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Fourth Quarter FY 2015
Quarterly Update
Infineon Technologies AG
Investor Relations
Table of Contents
Infineon at a Glance
Growth Drivers
Results and Outlook
1
2
3
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.
The opening balance sheet values, and with them the comparative information for the previous period have been adjusted as a result
of the continuing analysis and valuation of the assets and liabilities acquired as part of the preliminary purchase price allocation for
International Rectifier.
22015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
Leadership in system understanding will foster
future growth and profitability
#1 and technology
leader in Power
System leader in
Automotive
Leader in Security
Solutions
Competitive advantages
Revenue Growth:
~8%
Segment Result Margin:
~15%
Investment-to-Sales:
~13%
Average-cycle financial targets
32015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
Automotive and power are the two major
pillars of Infineon‘s businesses
Revenue split by Segment Power represents ~60% of revenue
ATV IPC PMM CCS
Power Non-Power
[EUR m]
614
271
534
181
Q4 FY15 revenue: EUR 1,598m
ATV
~39%
CCS
~11%
IPC
~17%
PMM
~33%
OOS + C&E
~0%
42015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
Infineon is growing faster than the market in
automotive and is clear leader in power
Discrete power semiconductors and
power modules.
Source: IHS Inc., September 2015
Microcontroller-based smart
card ICs.
Source: IHS Inc., July 2015
Automotive semiconductors incl.
semiconductor sensors.
Source: Strategy Analytics,
April 2015
Automotive
semiconductors
total market in 2014:
$27.5bn
6.8%
7.5%
7.8%
10.5%
12.0%
NXP
Freescale
STMicro
Infineon
(incl. IRF)
Renesas
Power
semiconductors
total market in 2014:
$16.2bn
Smart Card ICs
total market in 2014:
$2.63bn
6.7%
15.2%
16.0%
23.9%
30.5%
SHHIC
STMicro
Samsung
Infineon
NXP
5.4%
5.7%
5.9%
7.0%
19.2%
Toshiba
Fairchild
STMicro
Mitsubishi
Infineon
(incl. IRF)
52015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
Strategic rationale of the International
Rectifier deal has proven true
Adding to scope Adding to scale
Adding technology Adding market presence
› Improved regional footprint in
particular in the US and APAC
› Increased presence in distribution
channel
› Rounding out the product portfolio
› Increasing breadth and depth of
application understanding
› Exploiting overhead synergies
› Selling breadth
› Operational synergies
› Capability to drive R&D
› GaN product and IP portfolio
› Multi-chip packages and
IPMs/µIPM™s
› HiRel capability
 

62015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
› In Q4 FY15, International Rectifier‘s businesses already met the 15% target
for the Group‘s Segment Result margin over the economic cycle
Tight customer relationships are based on
system know-how and app understanding
Distribution partnersEMS partners
ATV IPC CCSPMM
72015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
Table of Contents
Infineon at a Glance
Growth Drivers
Results and Outlook
1
2
3
82015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
Infineon benefits from auto, industrial and
security, the by far fastest growing segments
0.5%
1.2%
2.3%
5.4%
5.6%
9.6%
0% 2% 4% 6% 8% 10%
Consumer
Data Processing
Communications
Total Semi Market
Chip Card ICs**
Automotive
Industrial
Source: IHS, Worldwide Semiconductor Shipment Forecast, AMFT Q2 2015, September 2015
* In calendar year 2014
** Source: IHS, “Smart Cards Semiconductors”, August 2015
CAGR 2014 – 2019 by Semiconductor Industry Segment
$355bn*
$114bn*
$41bn*
$29bn*
$122bn*
$49bn*
$2.6bn*
-0.2%
92015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
Infineon is ideally
positioned to
benefit from
megatrends and
gain further
market share in
Automotive
Infineon is system leader in automotive;
making cars clean, safe and smart
#2 with strongest market share gains in 2014:
› #1 in power semiconductors*
› #2 in sensors*
› #3 in microcontrollers* (#1 in powertrain**)
Leader in electric drivetrain and CO2 reduction
- making cars clean
Focus on sustainable high-bill-of-material areas:
powertrain, safety/ADAS/autonomous cars, body
Leader in ADAS
- making autonomous driving safe and reliable
Most balanced portfolio with sensors, micro-
controllers and power for system approach
Leading product portfolio of sensors and security
ICs for individual convenience and connectivity
- making cars smart
* Source: Strategy Analytics, April 2015. ** own estimate.
102015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
Infineon holds leading positions in system-
crucial automotive product categories
Source: Strategy Analytics, April 2015.
* “others” include: opto, small-signal discretes, logic ICs, non-
power analog, memory, and other components.
Infineon covers
the entire
control loop
Power
27%
µC
24%
Sensors
15%
others*
34%
Infineon’s position 2014
Sensors (#2)
µC (#3)
Power (#1)
› “Power” and “Sensors” are among the
fastest growing product categories with
11% growth y-y each.
› Infineon increased market share in
“Power” by 3.5%-points resulting in
market share of 24.8%.
› Infineon’s share in “Sensors” driven by
pressure and magnetic sensors.
24.8%
8.7%
11.5%
2014 automotive semiconductor market by product category ($27.5bn)
112015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
› Increased connectivity
and software content
increase risk exposure to
hackers
› Internal/external connectivity
must be secured
Four megatrends are shaping the automotive market,
significantly increasing the semi content per vehicle
› Advanced connectivity is
driven by making the car
part of the Internet
› The car will be fully connected
(V2I, V2V, in-vehicle)
Connectivity Advanced security
ADAS/Autonomous driving
› From ADAS to semi-automated
and finally autonomous driving
› Every world region is striving for
“0-accident”
› Mandated CO2 reductions make
electrification of powertrain
inevitable
xEV/eMobility
122015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
Infineon is the market leader in Radar,
10 millions chips shipped already
Vision Zero
+ Autonomous Driving
Innovationsfordriver,roadand
pedestriansafety
Mid-Range Radar
1st 77 GHz product in
eWLB package
Dual-Chip Radar
Solution
1st complete System
solution: 400 GHz RF,
µC, power supply
2009 Today > 2022
“ATLAS” IC
1st SiGe 77 GHz
Transceiver
Next Generation
Dual-Chip Radar
Solution
600 GHz RF,
AURIXTM 3rd Gen,
power supply
Single-Chip Radar
Solution (CMOS)
* Source: IHS Inc., ADAS Sensor Market Shares – 2014
Infineon
STM
Freescale
Others
132015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
› Most robust detection of head
position, head orientation and eye
closure
› Observe the state of the driver and
passengers
› Optimize head-up displays and
augmented reality to driver’s head
position
Infineon REAL3™ 3D image sensor elementary
for driver assistance systems
Infineon REAL3™ – 3D depth sensing based on time-of-flight
The position of the 49 reference points is determined using
the image recognition software of Kostal.
REAL3™ sensorKostal camera system
142015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
Courtesy: Kostal
Redundancy in safety-critical applications
drives semiconductor demand
› ADAS/semi-autonomous driving is forcing
requirements for safety-critical applications
(e.g. electric power steering):
› safety, availability, reliability, security
› A common solution is redundancy, e.g. multiple
sensors
› Infineon provides a smart solution to implement
redundancy, e.g. the new dual Hall sensor
Dual Hall sensor – two sensor chips are placed on top of each other
side view
top view
3 mm
152015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
cross section
Semiconductor content itemized to
automation levels
Camera
TotalBOM
SensorFusion
Lidar
Radar
Average ADAS semiconductor content per level of automation
Level 2 Level 3 Level 4
SensorFusion
TotalBOM
Actuators
Camera
Lidar
Radar
SensorFusion
Lidar
Radar
Camera
Actuators
TotalBOM
$100
$400
$550
40%
60%
45%
35%
12%
8%
40%
25%
5%
20%
10%
162015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
Semiconductor content of EV/HEV vehicles
falls right into Infineon's core competence
Average semiconductor content
Power
Sensors
µC
Power
Other
Sensors
µC
Internal Combustion Engine
Vehicle
Add-on for Plug-In-Hybrid
Electric Vehicle (PHEV)
Electric Vehicle
Power
Other
Sensors
µC
21%
23%
13%
$710
$704
$37276%
4%
4%
16%
55%
11%
7%
27%
$338
43%
Other $338
Source: Strategy Analytics, "Automotive Semiconductor Demand Forecast 2013 – 2022", June 2015
172015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
Courtesy: BMW Group
Courtesy: Hyundai
Infineon is best positioned to benefit from
EV/HEV car ramp
Model S
FCEV
Fuel Cell
in
Production
Optima/Sonata
Grandeur
LaCrosse, Regal,
Malibu
V60,
S60, XC90
i3 i8
Zoe
EV50
EJ02
M1
Tong Yue
A3 e-tron
Q5 A6
Ray EV
ix35
Soul EV
508RHX
3008
EV in
Produc-
tion
HEV in
Production
Qin
China
Hybrid Bus
Focus
Kangoo
Twingo
B-Class
E-Class
S-Class
Passat, Golf
Jetta
335i - 535i
2 series - x3
e-Golf
e-up
Panamera
Cayenne
EV
Future
SOP
HEV
Future
SOP
1 Premium
OEM
1 Mass Market
OEM
1 Mass Market
OEM
1 Premium OEM
2 Mass Market
OEMs
SOP = Start of Production
182015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
ADAS, CO2 reduction and adoption of premium
features drive Infineon growth
Vehicle production
Drivers for semiconductor content per car
CO2 reduction Advanced safety Comfort, premium
› ~2% growth per
annum
› Highest growth in
emerging markets
› Western Europe
recovering, the US on
high level
› Driven by legislation
› Improvements of ICE
(e.g. electric steering,
electric pumps and
motors)
› Adoption of EV/HEV
› Current:
crash avoidance
› Next:
assisted Driving
› Future:
autonomous driving
› Premium cars are
early adopters of
high-end comfort and
safety features
› Trickling down to mid-
range
~8% p.a. through-cycle growth
192015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
Infineon is ideally
positioned to gain
further market
share and earn
superior margins
in power
semiconductors
Infineon is #1 and technology leader in power
semiconductors
#1 in the market*
Addressing broadest range of applications
300mm thin-wafer manufacturing for power
semiconductors
Broadest product and technology portfolio
Leader in next-generation power
semiconductor materials GaN and SiC
System leader with digitalization of the control
loop and functional integration
* Source: IHS Inc., “Power Semiconductor Discretes & Modules Report – 2015”, September 2015
202015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
Consumption
As system leader in power Infineon offers
solutions to a wide spectrum of applications
Covering the entire power chain
TransmissionGeneration
Main IPC markets Main PMM power markets
System competence for highest reliability and highest efficiency
Controllers Drivers MOSFETs/IGBTs Modules Stacks
› Primarion, CHiL
› .dp
› Power ICs
› XMC™ µC family
› MOSFET driver
› IGBT driver
› galvanic
isolation
› low-voltage MOSFETs
› med-voltage MOSFETs
› high-voltage MOSFETs
› discrete IGBTs
› low-power
› mid-power
› high-power
› IGBT stacks
212015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
Infineon continuously improved market share
in power while competitors remained flat
8.1% 8.4%
9.4%
8.5%
9.7% 10.2% 10.7% 11.2%
11.9% 11.8% 12.3%
19.2%**
1.50 1.49
1.65 1.69
2.74**
1
2
3
0%
5%
10%
15%
20%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
market share Infineon [lhs] market share competitor [lhs] relative market share [rhs]
Int.Rectifier
Development on Infineon’s market share and relative market share*
in the total power semiconductor market
Int.Rectifier
Fairchild
Int.Rectifier
STMicro
Vishay
Toshiba
Mitsubishi
Toshiba
Toshiba
Mitsubishi
Mitsubishi
* The relative market share is defined as the proportion of the market share held by the market leader (in allyears presented for
Infineon) compared to the market share of the second largest competitor in the relevant year.
** Including International Rectifier.
Source: IHS Inc., several reports from 2004 through 2015
222015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
IRF and LSPS lift Infineon to top-5 position in
fast-growing IPM market for the first time
Discrete standard
MOSFETs
total market in 2014: $5.83bn
therein: IPMs
total market in 2014: $1.26bn
IGBT components*
(discretes and modules)
total market in 2014: $4.45bn
4.3%
7.3%
12.8%
21.6%
26.5%
Fairchild
Semikron
Fuji Electric
Mitsubishi
Infineon
(incl. IRF)
7.1%
8.6%
9.5%
11.9%
46.1%
Infineon
(incl. IRF)
On Semi
Semikron
Fuji
Electric
Mitsubishi
7.7%
8.6%
9.2%
10.5%
27.8%
Toshiba
STMicro
Fairchild
Renesas
Infineon
(incl. IRF)
* The market for IGBT components ($4,448m) includes discrete IGBTs ($947m), Standard IGBT modules ($1,908m), CIB/PIM
($333m), and IPMs ($1,260m).
Source: IHS Inc., “Power Semiconductor Discretes & Modules Report – 2015”, September 2015
232015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
Efficiency and digitalization are main market
drivers for power applications
Traction MHARenewables AC/DCDrives DC/DC
› Legislation
› Growing
share of
renewable
energies as
part of the
energy
generation
mix
› Energy
efficiency
› Automation
› Productivity
increase
› Growing
population
in metro-
politan areas
› Fast and
efficient
mass trans-
port system
› Energy
efficiency
› Growing
VSD
penetration
› Energy
efficiency
› Charging
time
› Compact-
ness (power
density)
› DPM
› Energy
efficiency
› Compact-
ness (power
density)
› DPM
IPC PMM
DPM = Digital Power Management.
MHA = Major Home Appliances.
VSD = Variable Speed Drive.
242015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
IPC: Increasing Inverterization Drives Power
Semiconductors in Home Appliances
› Biggest home appliances market
for IGBT modules is room air
conditioning
› Efficiency programs led and still
lead to higher variable speed drive
(VSD) penetration rate
› Increasing VSD penetration is the
key driver for semi growth in MHA
Source: IHS Inc., “Major Home Appliances – World 2013”, October 2013
IGBT modules in home appliances
748 1,315
2013 2017
[US$ m]
CAGR(13-17)
= 15.1%
Penetration of VSD
[units m] 2011 2016 CAGR
electric motor-based
home appliances
420 514 4.1%
VSD penetration ~20% ~40%
total VSD appliances 86 205 19.0%
252015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
IPC: Chinese government promotes electric
busses to reduce air pollution
› To reduce air pollution Chinese government announced to increase number of
electric busses in use by factor of 20: from today’s 10k to 200k in 2020
› Infineon EconoDual IGBT modules are qualified for CAV* applications
› Several EconoDual IGBT modules are used per electric bus resulting in a
semiconductor content of about €600 per vehicle
* CAV = Construction and agricultural vehicles
Infineon EconoDual IGBT module Example of Chinese electric bus
262015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
PMM: Silicon microphone: strong market
success due to outstanding characteristics
Source: IHS Inc., “MEMS Microphones Data”, Oct. 2015
3.5%
1.5%
5.2%
7.3% 8.8%
16.1%
26.5%
29.8%
34.3%
2006 2008 2010 2012 2014
1.5%
4.1%
8.4%
34.3%
47.4%
NeoMEMS
NRJC
Omron
Infineon
Knowles
Continued market share gains 2014 market share
0.9 mm
272015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
Silicon microphoneMembraneHighly sophisticated MEMS-based
manufacturing process
Infineon is ideally
positioned to
benefit from the
growth trends in
the security
controller market
Infineon is the leader in security solutions for
the connected world
Infineon Security Partner Network (ISPN)
 easy implementation of proven
semiconductor-based security for
manufacturers of connected devices and
systems
Leading in growth segments payment,
government ID, connected car, and IoT
Complete portfolio of hardware, software,
services and turn-key solutions
#2 in microcontroller-based smart card ICs*
*Source: IHS Inc., July 2015
282015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
Infineon supplies embedded Secure Element
for all Samsung Gear S2 smart watch models
Infineon eSE
› Infineon embedded Secure Element
(eSE) safeguards users’ sensitive
data and supports secured
contactless payment transactions
based on Near Field Communications
(NFC) technology
› Infineon eSE chips are easy to
integrate and a perfect match for
convenient, secure transactions with
wearable devices
› Infineon eSE securely stores
encryption keys, users’ payment
credentials and biometric information
for convenient fingerprint
authentication and other applications
292015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
Infineon confirms its leading role in Internet of
Things (IoT) security
› Smart home devices will fuel
demand for hardware-based
security
› OPTIGA™ TPM (based on latest
TPM 2.0 standard) is first to
comply with internationally
recognized computer security
requirements
Infineon OPTIGA™ TPM in Google’s OnHub router and smart home hub
302015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
CCS is well positioned to grow faster than the
market as leader in security solutions
IoT Security
Government
Identification
Payment
› Transition to chip-
based payment
cards in China and
the US
› Growth of mobile
payment
› Adoption of
electronic
governmental
documents
(national ID cards,
passports, health
cards, etc.)
› Emergence of
multi-application
cards
› Rise of smart
homes, connected
cars, automated
industries etc.
› Increasing need for
IT security
› Growth of M2M
communication
312015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
High-end Mobile
Communications
› Greater adoption of
NFC technologies
for mobile payment
and other
applications
Infineon‘s long-term growth is based on
sustainable growth drivers
~8% p.a. through-cycle growth
ATV IPC PMM CCS
Courtesy: BMW Group
› CO2 reduction
› Advanced Driver
Assistance
Systems
› Energy efficiency
› Automation
› Productivity
increase
› Energy efficiency
› Power density
› Mobile device and
LTE growth
› Security as a
function
› Mobile payments
› Authentication
› Internet of Things
322015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
Table of Contents
Infineon at a Glance
Growth Drivers
Results and Outlook
1
2
3
332015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
Strong y-y growth due to organic growth and
integration of International Rectifier
Revenue and Segment Result*
[EUR m]
1,175
1,128
1,483
1,586 1,598
188 169 198 245 286
Q4 FY14 Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15
Revenue Segment Result Segment Result Margin
18%16% 15% 13% 15%
+36%
* Including International Rectifier from 13 January 2015.
Q4 FY15
1,359
1,598
239
342015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
ATV, IPC, PMM boosted by Int. Rectifier
business; CCS growth solely organicly
518 518
598
621 614
219
190
241
269 271
300
280
464
517 534
142 132
182 172 181
69 72 64 71 93 44 28 20 32 41 60 48 82 105 118 20 18 32 34 37
Q4
FY14
Q1
FY15
Q2 Q3 Q4 Q4
FY14
Q1
FY15
Q2 Q3 Q4 Q4
FY14
Q1
FY15
Q2 Q3 Q4 Q4
FY14
Q1
FY15
Q2 Q3 Q4
Revenue Segment Result Segment Result Margin
+24%
[EUR m]
+78%
15%13% 14% 11% 11%
8% 12%15%20% 15%
14% 20%
20%
ATV* IPC* CCSPMM*
[EUR m] [EUR m] [EUR m]
+27%
18%
18% 22%20% 17%
14% 20%
* Including International Rectifier from 13 January 2015.
+19%
352015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
Guidance for Q1 FY16 and total FY16
Segment
Result
Margin
Revenue
Outlook Q1 FY16*
(compared to Q4 FY15)
At the mid-point of the
revenue guidance:
14%
Decrease of 6%
+/- 2%-points
At the mid-point of the
revenue guidance:
16%
Investments in FY16 About €850m
D&A in FY16 About €850m**
Outlook FY16*
(compared to FY15)
* Based on an assumed average exchange rate of $1.10 for €1.00.
** Including D&A on tangible and intangible assets from purchase price allocation of International Rectifier.
Increase of 13%
+/- 2%-points
362015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
Infineon‘s Revenue Development (excl.
IRF) Outperformed Total Semi Market
* Based on Infineon’s portfolio (excl. Other Operating Segments and Corporate & Eliminations) per end of 2015 fiscal year.
** Based on market development assumptions FY99’s revenue figures for some smaller product categories have been derived
from the FY00’s revenue figures.
*** Scale indexed to the Infineon FY99 revenue.
Source: Infineon; WSTS (World Semiconductor Trade Statistics), November 2015
CAGR(99-15): ~9%
CAGR(99-15): +5.4%
[EUR m]
1,200**
1,681
2,045
1,821
1,995
2,289
2,366
2,701
2,906
2,916
2,128
3,103
3,780
3,774
3,815
4,303
5,100(excl.IRF)
0
1500
3000
4500
1999 2001 2003 2005 2007 2009 2011 2013 2015
Revenue Infineon* [lhs]
Semiconductor World Market (adjusted for the Infineon fiscal year ending Sep 30)
126,895***
296,383
382015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
Integration of International Rectifier digested;
R&D and SG&A stable in target range
S and G&A*,** R&D*,***
[EUR m]
* Including International Rectifier from 13 January 2015.
** Target range for SG&A: „Low teens percentage of sales“.
*** Target range for R&D: „Low to mid teens percentage of sales“.
138 136
218
210 215
140 139
180
201 197
10%
11%
12%
13%
14%
15%
0
20
40
60
80
100
120
140
160
180
200
220
Q4
FY14
Q1
FY15
Q2 Q3 Q4 Q4
FY14
Q1
FY15
Q2 Q3 Q4
General & Administration Selling R&D % of sales [rhs]
392015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
Increase in inventories in light of expected
growth in Q2 FY16
Working capital*,** Inventories*
Trade receivables* Trade payables*
[EUR m]
* Including International Rectifier from 13 January 2015. ** For definition please see page 45.
707 755
1,012 1,040
1,129
0
25
50
75
100
125
0
200
400
600
800
1000
Q4
FY14
Q1
FY15
Q2 Q3 Q4
Inventories DOI**
[EUR m]
581
486
739 729 742
0
25
50
75
100
0
200
400
600
800
Q4
FY14
Q1
FY15
Q2 Q3 Q4
Trade receivables DSO**
[EUR m]
648
572
677
747 802
0
25
50
75
100
0
200
400
600
800
Q4
FY14
Q1
FY15
Q2 Q3 Q4
Trade payables DPO**
[EUR m] [days]
-52
490
750
631
550
-100
100
300
500
700
Q4
FY14
Q1
FY15 Q2 Q3 Q4
[days]
[days]
402015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
Investments on target of 13% of sales;
D&A stable at 13% of sales
887 890
378
668
785**
364
428
466
514
760
850 850
22.2%
22.8%
9.8%
15.5%
13.5% 13.0%
9.1%
11.0%
12.1% 11.9%
13.1% 13.0%
0%
10%
20%
30%
0
200
400
600
800
1000
FY11 FY12 FY13 FY14 FY15* FY16e FY11 FY12 FY13 FY14 FY15* FY16e
Guidance % of revenue [rhs]
Investments*** D&A
[EUR m]
* Including International Rectifier from 13 January 2015.
** Including €54m for Kulim 2, and €21m for Qimonda IP.
*** For definition please see page 45.
412015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
Dividend increase of €0.02 expected in
February 2016 after increase of €0.06 in 2015
[EUR m]
173
62
35
26
20
38
109
130
129 129 202
225
FY11 FY12 FY13 FY14 FY15 FY16e
convertible bond buyback share buyback (via put options) dividends
308
212
167
Total gross capital returns history
1,278
› Increase of
dividend from
€0.18 to €0.20
will be proposed
to AGM on 18
February 2016.
› Payout of
~€225m will
follow on 19
February 2016.
164
202
225
422015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
Acquisition of International Rectifier
completed; growing net cash position
2418
2107
1656
1842
2013
186
190
1832
1793
1793
2232
1917
-176
49
220
Q4
FY14
Q1
FY15
Q2 Q3 Q4
Gross Cash Debt Net Cash
Liquidity development
[EUR m]
› In Q4 FY15, gross cash and net cash increased due to
– positive Free Cash Flow of €177m
432015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
Net Debt
5% 7% 16% 27% 17% 21% 24% 24% 18% 6% 9% 26%
0%
10%
20%
30%
Q1 FY13 Q2 Q3 Q4 Q1 FY14 Q2 Q3 Q4 Q1 FY15 Q2 Q3 Q4
Strong increase in RoCE in Q4 FY15 exceeding
target: 'RoCE above WACC' over the cycle
RoCE* history
[EUR m]
Capital Employed* history
WACC: low teens %
* Including International Rectifier from 13 January 2015. For definition please see page 45.
FY13: 14%
FY14: 20%
2239 2274 2216 2159 2194 2232 2327 2452
2969
5213 5009 5176
0
2000
4000
6000
Q1 FY13 Q2 Q3 Q4 Q1 FY14 Q2 Q3 Q4 Q1 FY15 Q2 Q3 Q4
FY15: 13%
442015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
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
DPO (days payables outstanding; quarter-to-date) =
('Trade payables' / ['Cost of goods sold' + 'Purchase of property, plant and equipment']) * 90
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')
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.
DSO (days sales outstanding; quarter-to-date) =
('Trade receivables' / 'revenue') * 90
452015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
› January 2015: Infineon is
listed in the Sustainability
Yearbook for the fifth
consecutive year and,
according to RobecoSAM,
among the top 15% most
sustainable companies
worldwide.
› 10 September 2015:
Infineon was listed in the
Dow Jones Sustainability
Index for the sixth
consecutive year.
Infineon is a long-standing member of
Europe's leading sustainability indices
› September 2014:
Infineon was listed in
the STOXX® Global
ESG Leaders Indices,
which serves as an
indicator of the quality of Infineon’s
performance in the governance, social and
environmental areas (ESG).
Infineon’s most recent achievements
› Infineon was added to the
FTSE4Good Index Series
in 2001 and has been
confirmed as a member
since then (most recent
review: June 2015).
462015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
Financial calendar
Date Location Event
01 – 02 Dec 2015 Phoenix, AZ Credit Suisse TMT Conference
02 Feb 2016* Q1 FY16 Results
18 Feb 2016 Munich Annual General Meeting
03 May 2016* Q2 FY16 Results
02 Aug 2016* Q3 FY16 Results
30 Nov 2016* Q4 FY16 and FY 2016 Results
* preliminary
472015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
Institutional Investor Relations contacts
Dr. Jürgen Rebel
Corporate Vice President  +49 89 234-21626
Investor Relations  juergen.rebel@infineon.com
Joachim Binder
Senior Director  +49 89 234-25649
Investor Relations  joachim.binder@infineon.com
Holger Schmidt
Manager  +49 89 234-22332
Investor Relations  holger.schmidt@infineon.com
482015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.

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Infineon Inverstor Relations Q4 2015

  • 1. Fourth Quarter FY 2015 Quarterly Update Infineon Technologies AG Investor Relations
  • 2. Table of Contents Infineon at a Glance Growth Drivers Results and Outlook 1 2 3 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. The opening balance sheet values, and with them the comparative information for the previous period have been adjusted as a result of the continuing analysis and valuation of the assets and liabilities acquired as part of the preliminary purchase price allocation for International Rectifier. 22015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
  • 3. Leadership in system understanding will foster future growth and profitability #1 and technology leader in Power System leader in Automotive Leader in Security Solutions Competitive advantages Revenue Growth: ~8% Segment Result Margin: ~15% Investment-to-Sales: ~13% Average-cycle financial targets 32015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
  • 4. Automotive and power are the two major pillars of Infineon‘s businesses Revenue split by Segment Power represents ~60% of revenue ATV IPC PMM CCS Power Non-Power [EUR m] 614 271 534 181 Q4 FY15 revenue: EUR 1,598m ATV ~39% CCS ~11% IPC ~17% PMM ~33% OOS + C&E ~0% 42015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
  • 5. Infineon is growing faster than the market in automotive and is clear leader in power Discrete power semiconductors and power modules. Source: IHS Inc., September 2015 Microcontroller-based smart card ICs. Source: IHS Inc., July 2015 Automotive semiconductors incl. semiconductor sensors. Source: Strategy Analytics, April 2015 Automotive semiconductors total market in 2014: $27.5bn 6.8% 7.5% 7.8% 10.5% 12.0% NXP Freescale STMicro Infineon (incl. IRF) Renesas Power semiconductors total market in 2014: $16.2bn Smart Card ICs total market in 2014: $2.63bn 6.7% 15.2% 16.0% 23.9% 30.5% SHHIC STMicro Samsung Infineon NXP 5.4% 5.7% 5.9% 7.0% 19.2% Toshiba Fairchild STMicro Mitsubishi Infineon (incl. IRF) 52015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
  • 6. Strategic rationale of the International Rectifier deal has proven true Adding to scope Adding to scale Adding technology Adding market presence › Improved regional footprint in particular in the US and APAC › Increased presence in distribution channel › Rounding out the product portfolio › Increasing breadth and depth of application understanding › Exploiting overhead synergies › Selling breadth › Operational synergies › Capability to drive R&D › GaN product and IP portfolio › Multi-chip packages and IPMs/µIPM™s › HiRel capability    62015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved. › In Q4 FY15, International Rectifier‘s businesses already met the 15% target for the Group‘s Segment Result margin over the economic cycle
  • 7. Tight customer relationships are based on system know-how and app understanding Distribution partnersEMS partners ATV IPC CCSPMM 72015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
  • 8. Table of Contents Infineon at a Glance Growth Drivers Results and Outlook 1 2 3 82015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
  • 9. Infineon benefits from auto, industrial and security, the by far fastest growing segments 0.5% 1.2% 2.3% 5.4% 5.6% 9.6% 0% 2% 4% 6% 8% 10% Consumer Data Processing Communications Total Semi Market Chip Card ICs** Automotive Industrial Source: IHS, Worldwide Semiconductor Shipment Forecast, AMFT Q2 2015, September 2015 * In calendar year 2014 ** Source: IHS, “Smart Cards Semiconductors”, August 2015 CAGR 2014 – 2019 by Semiconductor Industry Segment $355bn* $114bn* $41bn* $29bn* $122bn* $49bn* $2.6bn* -0.2% 92015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
  • 10. Infineon is ideally positioned to benefit from megatrends and gain further market share in Automotive Infineon is system leader in automotive; making cars clean, safe and smart #2 with strongest market share gains in 2014: › #1 in power semiconductors* › #2 in sensors* › #3 in microcontrollers* (#1 in powertrain**) Leader in electric drivetrain and CO2 reduction - making cars clean Focus on sustainable high-bill-of-material areas: powertrain, safety/ADAS/autonomous cars, body Leader in ADAS - making autonomous driving safe and reliable Most balanced portfolio with sensors, micro- controllers and power for system approach Leading product portfolio of sensors and security ICs for individual convenience and connectivity - making cars smart * Source: Strategy Analytics, April 2015. ** own estimate. 102015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
  • 11. Infineon holds leading positions in system- crucial automotive product categories Source: Strategy Analytics, April 2015. * “others” include: opto, small-signal discretes, logic ICs, non- power analog, memory, and other components. Infineon covers the entire control loop Power 27% µC 24% Sensors 15% others* 34% Infineon’s position 2014 Sensors (#2) µC (#3) Power (#1) › “Power” and “Sensors” are among the fastest growing product categories with 11% growth y-y each. › Infineon increased market share in “Power” by 3.5%-points resulting in market share of 24.8%. › Infineon’s share in “Sensors” driven by pressure and magnetic sensors. 24.8% 8.7% 11.5% 2014 automotive semiconductor market by product category ($27.5bn) 112015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
  • 12. › Increased connectivity and software content increase risk exposure to hackers › Internal/external connectivity must be secured Four megatrends are shaping the automotive market, significantly increasing the semi content per vehicle › Advanced connectivity is driven by making the car part of the Internet › The car will be fully connected (V2I, V2V, in-vehicle) Connectivity Advanced security ADAS/Autonomous driving › From ADAS to semi-automated and finally autonomous driving › Every world region is striving for “0-accident” › Mandated CO2 reductions make electrification of powertrain inevitable xEV/eMobility 122015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
  • 13. Infineon is the market leader in Radar, 10 millions chips shipped already Vision Zero + Autonomous Driving Innovationsfordriver,roadand pedestriansafety Mid-Range Radar 1st 77 GHz product in eWLB package Dual-Chip Radar Solution 1st complete System solution: 400 GHz RF, µC, power supply 2009 Today > 2022 “ATLAS” IC 1st SiGe 77 GHz Transceiver Next Generation Dual-Chip Radar Solution 600 GHz RF, AURIXTM 3rd Gen, power supply Single-Chip Radar Solution (CMOS) * Source: IHS Inc., ADAS Sensor Market Shares – 2014 Infineon STM Freescale Others 132015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
  • 14. › Most robust detection of head position, head orientation and eye closure › Observe the state of the driver and passengers › Optimize head-up displays and augmented reality to driver’s head position Infineon REAL3™ 3D image sensor elementary for driver assistance systems Infineon REAL3™ – 3D depth sensing based on time-of-flight The position of the 49 reference points is determined using the image recognition software of Kostal. REAL3™ sensorKostal camera system 142015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved. Courtesy: Kostal
  • 15. Redundancy in safety-critical applications drives semiconductor demand › ADAS/semi-autonomous driving is forcing requirements for safety-critical applications (e.g. electric power steering): › safety, availability, reliability, security › A common solution is redundancy, e.g. multiple sensors › Infineon provides a smart solution to implement redundancy, e.g. the new dual Hall sensor Dual Hall sensor – two sensor chips are placed on top of each other side view top view 3 mm 152015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved. cross section
  • 16. Semiconductor content itemized to automation levels Camera TotalBOM SensorFusion Lidar Radar Average ADAS semiconductor content per level of automation Level 2 Level 3 Level 4 SensorFusion TotalBOM Actuators Camera Lidar Radar SensorFusion Lidar Radar Camera Actuators TotalBOM $100 $400 $550 40% 60% 45% 35% 12% 8% 40% 25% 5% 20% 10% 162015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
  • 17. Semiconductor content of EV/HEV vehicles falls right into Infineon's core competence Average semiconductor content Power Sensors µC Power Other Sensors µC Internal Combustion Engine Vehicle Add-on for Plug-In-Hybrid Electric Vehicle (PHEV) Electric Vehicle Power Other Sensors µC 21% 23% 13% $710 $704 $37276% 4% 4% 16% 55% 11% 7% 27% $338 43% Other $338 Source: Strategy Analytics, "Automotive Semiconductor Demand Forecast 2013 – 2022", June 2015 172015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved. Courtesy: BMW Group Courtesy: Hyundai
  • 18. Infineon is best positioned to benefit from EV/HEV car ramp Model S FCEV Fuel Cell in Production Optima/Sonata Grandeur LaCrosse, Regal, Malibu V60, S60, XC90 i3 i8 Zoe EV50 EJ02 M1 Tong Yue A3 e-tron Q5 A6 Ray EV ix35 Soul EV 508RHX 3008 EV in Produc- tion HEV in Production Qin China Hybrid Bus Focus Kangoo Twingo B-Class E-Class S-Class Passat, Golf Jetta 335i - 535i 2 series - x3 e-Golf e-up Panamera Cayenne EV Future SOP HEV Future SOP 1 Premium OEM 1 Mass Market OEM 1 Mass Market OEM 1 Premium OEM 2 Mass Market OEMs SOP = Start of Production 182015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
  • 19. ADAS, CO2 reduction and adoption of premium features drive Infineon growth Vehicle production Drivers for semiconductor content per car CO2 reduction Advanced safety Comfort, premium › ~2% growth per annum › Highest growth in emerging markets › Western Europe recovering, the US on high level › Driven by legislation › Improvements of ICE (e.g. electric steering, electric pumps and motors) › Adoption of EV/HEV › Current: crash avoidance › Next: assisted Driving › Future: autonomous driving › Premium cars are early adopters of high-end comfort and safety features › Trickling down to mid- range ~8% p.a. through-cycle growth 192015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
  • 20. Infineon is ideally positioned to gain further market share and earn superior margins in power semiconductors Infineon is #1 and technology leader in power semiconductors #1 in the market* Addressing broadest range of applications 300mm thin-wafer manufacturing for power semiconductors Broadest product and technology portfolio Leader in next-generation power semiconductor materials GaN and SiC System leader with digitalization of the control loop and functional integration * Source: IHS Inc., “Power Semiconductor Discretes & Modules Report – 2015”, September 2015 202015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
  • 21. Consumption As system leader in power Infineon offers solutions to a wide spectrum of applications Covering the entire power chain TransmissionGeneration Main IPC markets Main PMM power markets System competence for highest reliability and highest efficiency Controllers Drivers MOSFETs/IGBTs Modules Stacks › Primarion, CHiL › .dp › Power ICs › XMC™ µC family › MOSFET driver › IGBT driver › galvanic isolation › low-voltage MOSFETs › med-voltage MOSFETs › high-voltage MOSFETs › discrete IGBTs › low-power › mid-power › high-power › IGBT stacks 212015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
  • 22. Infineon continuously improved market share in power while competitors remained flat 8.1% 8.4% 9.4% 8.5% 9.7% 10.2% 10.7% 11.2% 11.9% 11.8% 12.3% 19.2%** 1.50 1.49 1.65 1.69 2.74** 1 2 3 0% 5% 10% 15% 20% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 market share Infineon [lhs] market share competitor [lhs] relative market share [rhs] Int.Rectifier Development on Infineon’s market share and relative market share* in the total power semiconductor market Int.Rectifier Fairchild Int.Rectifier STMicro Vishay Toshiba Mitsubishi Toshiba Toshiba Mitsubishi Mitsubishi * The relative market share is defined as the proportion of the market share held by the market leader (in allyears presented for Infineon) compared to the market share of the second largest competitor in the relevant year. ** Including International Rectifier. Source: IHS Inc., several reports from 2004 through 2015 222015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
  • 23. IRF and LSPS lift Infineon to top-5 position in fast-growing IPM market for the first time Discrete standard MOSFETs total market in 2014: $5.83bn therein: IPMs total market in 2014: $1.26bn IGBT components* (discretes and modules) total market in 2014: $4.45bn 4.3% 7.3% 12.8% 21.6% 26.5% Fairchild Semikron Fuji Electric Mitsubishi Infineon (incl. IRF) 7.1% 8.6% 9.5% 11.9% 46.1% Infineon (incl. IRF) On Semi Semikron Fuji Electric Mitsubishi 7.7% 8.6% 9.2% 10.5% 27.8% Toshiba STMicro Fairchild Renesas Infineon (incl. IRF) * The market for IGBT components ($4,448m) includes discrete IGBTs ($947m), Standard IGBT modules ($1,908m), CIB/PIM ($333m), and IPMs ($1,260m). Source: IHS Inc., “Power Semiconductor Discretes & Modules Report – 2015”, September 2015 232015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
  • 24. Efficiency and digitalization are main market drivers for power applications Traction MHARenewables AC/DCDrives DC/DC › Legislation › Growing share of renewable energies as part of the energy generation mix › Energy efficiency › Automation › Productivity increase › Growing population in metro- politan areas › Fast and efficient mass trans- port system › Energy efficiency › Growing VSD penetration › Energy efficiency › Charging time › Compact- ness (power density) › DPM › Energy efficiency › Compact- ness (power density) › DPM IPC PMM DPM = Digital Power Management. MHA = Major Home Appliances. VSD = Variable Speed Drive. 242015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
  • 25. IPC: Increasing Inverterization Drives Power Semiconductors in Home Appliances › Biggest home appliances market for IGBT modules is room air conditioning › Efficiency programs led and still lead to higher variable speed drive (VSD) penetration rate › Increasing VSD penetration is the key driver for semi growth in MHA Source: IHS Inc., “Major Home Appliances – World 2013”, October 2013 IGBT modules in home appliances 748 1,315 2013 2017 [US$ m] CAGR(13-17) = 15.1% Penetration of VSD [units m] 2011 2016 CAGR electric motor-based home appliances 420 514 4.1% VSD penetration ~20% ~40% total VSD appliances 86 205 19.0% 252015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
  • 26. IPC: Chinese government promotes electric busses to reduce air pollution › To reduce air pollution Chinese government announced to increase number of electric busses in use by factor of 20: from today’s 10k to 200k in 2020 › Infineon EconoDual IGBT modules are qualified for CAV* applications › Several EconoDual IGBT modules are used per electric bus resulting in a semiconductor content of about €600 per vehicle * CAV = Construction and agricultural vehicles Infineon EconoDual IGBT module Example of Chinese electric bus 262015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
  • 27. PMM: Silicon microphone: strong market success due to outstanding characteristics Source: IHS Inc., “MEMS Microphones Data”, Oct. 2015 3.5% 1.5% 5.2% 7.3% 8.8% 16.1% 26.5% 29.8% 34.3% 2006 2008 2010 2012 2014 1.5% 4.1% 8.4% 34.3% 47.4% NeoMEMS NRJC Omron Infineon Knowles Continued market share gains 2014 market share 0.9 mm 272015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved. Silicon microphoneMembraneHighly sophisticated MEMS-based manufacturing process
  • 28. Infineon is ideally positioned to benefit from the growth trends in the security controller market Infineon is the leader in security solutions for the connected world Infineon Security Partner Network (ISPN)  easy implementation of proven semiconductor-based security for manufacturers of connected devices and systems Leading in growth segments payment, government ID, connected car, and IoT Complete portfolio of hardware, software, services and turn-key solutions #2 in microcontroller-based smart card ICs* *Source: IHS Inc., July 2015 282015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
  • 29. Infineon supplies embedded Secure Element for all Samsung Gear S2 smart watch models Infineon eSE › Infineon embedded Secure Element (eSE) safeguards users’ sensitive data and supports secured contactless payment transactions based on Near Field Communications (NFC) technology › Infineon eSE chips are easy to integrate and a perfect match for convenient, secure transactions with wearable devices › Infineon eSE securely stores encryption keys, users’ payment credentials and biometric information for convenient fingerprint authentication and other applications 292015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
  • 30. Infineon confirms its leading role in Internet of Things (IoT) security › Smart home devices will fuel demand for hardware-based security › OPTIGA™ TPM (based on latest TPM 2.0 standard) is first to comply with internationally recognized computer security requirements Infineon OPTIGA™ TPM in Google’s OnHub router and smart home hub 302015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
  • 31. CCS is well positioned to grow faster than the market as leader in security solutions IoT Security Government Identification Payment › Transition to chip- based payment cards in China and the US › Growth of mobile payment › Adoption of electronic governmental documents (national ID cards, passports, health cards, etc.) › Emergence of multi-application cards › Rise of smart homes, connected cars, automated industries etc. › Increasing need for IT security › Growth of M2M communication 312015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved. High-end Mobile Communications › Greater adoption of NFC technologies for mobile payment and other applications
  • 32. Infineon‘s long-term growth is based on sustainable growth drivers ~8% p.a. through-cycle growth ATV IPC PMM CCS Courtesy: BMW Group › CO2 reduction › Advanced Driver Assistance Systems › Energy efficiency › Automation › Productivity increase › Energy efficiency › Power density › Mobile device and LTE growth › Security as a function › Mobile payments › Authentication › Internet of Things 322015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
  • 33. Table of Contents Infineon at a Glance Growth Drivers Results and Outlook 1 2 3 332015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
  • 34. Strong y-y growth due to organic growth and integration of International Rectifier Revenue and Segment Result* [EUR m] 1,175 1,128 1,483 1,586 1,598 188 169 198 245 286 Q4 FY14 Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Revenue Segment Result Segment Result Margin 18%16% 15% 13% 15% +36% * Including International Rectifier from 13 January 2015. Q4 FY15 1,359 1,598 239 342015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
  • 35. ATV, IPC, PMM boosted by Int. Rectifier business; CCS growth solely organicly 518 518 598 621 614 219 190 241 269 271 300 280 464 517 534 142 132 182 172 181 69 72 64 71 93 44 28 20 32 41 60 48 82 105 118 20 18 32 34 37 Q4 FY14 Q1 FY15 Q2 Q3 Q4 Q4 FY14 Q1 FY15 Q2 Q3 Q4 Q4 FY14 Q1 FY15 Q2 Q3 Q4 Q4 FY14 Q1 FY15 Q2 Q3 Q4 Revenue Segment Result Segment Result Margin +24% [EUR m] +78% 15%13% 14% 11% 11% 8% 12%15%20% 15% 14% 20% 20% ATV* IPC* CCSPMM* [EUR m] [EUR m] [EUR m] +27% 18% 18% 22%20% 17% 14% 20% * Including International Rectifier from 13 January 2015. +19% 352015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
  • 36. Guidance for Q1 FY16 and total FY16 Segment Result Margin Revenue Outlook Q1 FY16* (compared to Q4 FY15) At the mid-point of the revenue guidance: 14% Decrease of 6% +/- 2%-points At the mid-point of the revenue guidance: 16% Investments in FY16 About €850m D&A in FY16 About €850m** Outlook FY16* (compared to FY15) * Based on an assumed average exchange rate of $1.10 for €1.00. ** Including D&A on tangible and intangible assets from purchase price allocation of International Rectifier. Increase of 13% +/- 2%-points 362015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
  • 37.
  • 38. Infineon‘s Revenue Development (excl. IRF) Outperformed Total Semi Market * Based on Infineon’s portfolio (excl. Other Operating Segments and Corporate & Eliminations) per end of 2015 fiscal year. ** Based on market development assumptions FY99’s revenue figures for some smaller product categories have been derived from the FY00’s revenue figures. *** Scale indexed to the Infineon FY99 revenue. Source: Infineon; WSTS (World Semiconductor Trade Statistics), November 2015 CAGR(99-15): ~9% CAGR(99-15): +5.4% [EUR m] 1,200** 1,681 2,045 1,821 1,995 2,289 2,366 2,701 2,906 2,916 2,128 3,103 3,780 3,774 3,815 4,303 5,100(excl.IRF) 0 1500 3000 4500 1999 2001 2003 2005 2007 2009 2011 2013 2015 Revenue Infineon* [lhs] Semiconductor World Market (adjusted for the Infineon fiscal year ending Sep 30) 126,895*** 296,383 382015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
  • 39. Integration of International Rectifier digested; R&D and SG&A stable in target range S and G&A*,** R&D*,*** [EUR m] * Including International Rectifier from 13 January 2015. ** Target range for SG&A: „Low teens percentage of sales“. *** Target range for R&D: „Low to mid teens percentage of sales“. 138 136 218 210 215 140 139 180 201 197 10% 11% 12% 13% 14% 15% 0 20 40 60 80 100 120 140 160 180 200 220 Q4 FY14 Q1 FY15 Q2 Q3 Q4 Q4 FY14 Q1 FY15 Q2 Q3 Q4 General & Administration Selling R&D % of sales [rhs] 392015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
  • 40. Increase in inventories in light of expected growth in Q2 FY16 Working capital*,** Inventories* Trade receivables* Trade payables* [EUR m] * Including International Rectifier from 13 January 2015. ** For definition please see page 45. 707 755 1,012 1,040 1,129 0 25 50 75 100 125 0 200 400 600 800 1000 Q4 FY14 Q1 FY15 Q2 Q3 Q4 Inventories DOI** [EUR m] 581 486 739 729 742 0 25 50 75 100 0 200 400 600 800 Q4 FY14 Q1 FY15 Q2 Q3 Q4 Trade receivables DSO** [EUR m] 648 572 677 747 802 0 25 50 75 100 0 200 400 600 800 Q4 FY14 Q1 FY15 Q2 Q3 Q4 Trade payables DPO** [EUR m] [days] -52 490 750 631 550 -100 100 300 500 700 Q4 FY14 Q1 FY15 Q2 Q3 Q4 [days] [days] 402015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
  • 41. Investments on target of 13% of sales; D&A stable at 13% of sales 887 890 378 668 785** 364 428 466 514 760 850 850 22.2% 22.8% 9.8% 15.5% 13.5% 13.0% 9.1% 11.0% 12.1% 11.9% 13.1% 13.0% 0% 10% 20% 30% 0 200 400 600 800 1000 FY11 FY12 FY13 FY14 FY15* FY16e FY11 FY12 FY13 FY14 FY15* FY16e Guidance % of revenue [rhs] Investments*** D&A [EUR m] * Including International Rectifier from 13 January 2015. ** Including €54m for Kulim 2, and €21m for Qimonda IP. *** For definition please see page 45. 412015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
  • 42. Dividend increase of €0.02 expected in February 2016 after increase of €0.06 in 2015 [EUR m] 173 62 35 26 20 38 109 130 129 129 202 225 FY11 FY12 FY13 FY14 FY15 FY16e convertible bond buyback share buyback (via put options) dividends 308 212 167 Total gross capital returns history 1,278 › Increase of dividend from €0.18 to €0.20 will be proposed to AGM on 18 February 2016. › Payout of ~€225m will follow on 19 February 2016. 164 202 225 422015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
  • 43. Acquisition of International Rectifier completed; growing net cash position 2418 2107 1656 1842 2013 186 190 1832 1793 1793 2232 1917 -176 49 220 Q4 FY14 Q1 FY15 Q2 Q3 Q4 Gross Cash Debt Net Cash Liquidity development [EUR m] › In Q4 FY15, gross cash and net cash increased due to – positive Free Cash Flow of €177m 432015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved. Net Debt
  • 44. 5% 7% 16% 27% 17% 21% 24% 24% 18% 6% 9% 26% 0% 10% 20% 30% Q1 FY13 Q2 Q3 Q4 Q1 FY14 Q2 Q3 Q4 Q1 FY15 Q2 Q3 Q4 Strong increase in RoCE in Q4 FY15 exceeding target: 'RoCE above WACC' over the cycle RoCE* history [EUR m] Capital Employed* history WACC: low teens % * Including International Rectifier from 13 January 2015. For definition please see page 45. FY13: 14% FY14: 20% 2239 2274 2216 2159 2194 2232 2327 2452 2969 5213 5009 5176 0 2000 4000 6000 Q1 FY13 Q2 Q3 Q4 Q1 FY14 Q2 Q3 Q4 Q1 FY15 Q2 Q3 Q4 FY15: 13% 442015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
  • 45. 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 DPO (days payables outstanding; quarter-to-date) = ('Trade payables' / ['Cost of goods sold' + 'Purchase of property, plant and equipment']) * 90 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') 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. DSO (days sales outstanding; quarter-to-date) = ('Trade receivables' / 'revenue') * 90 452015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
  • 46. › January 2015: Infineon is listed in the Sustainability Yearbook for the fifth consecutive year and, according to RobecoSAM, among the top 15% most sustainable companies worldwide. › 10 September 2015: Infineon was listed in the Dow Jones Sustainability Index for the sixth consecutive year. Infineon is a long-standing member of Europe's leading sustainability indices › September 2014: Infineon was listed in the STOXX® Global ESG Leaders Indices, which serves as an indicator of the quality of Infineon’s performance in the governance, social and environmental areas (ESG). Infineon’s most recent achievements › Infineon was added to the FTSE4Good Index Series in 2001 and has been confirmed as a member since then (most recent review: June 2015). 462015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
  • 47. Financial calendar Date Location Event 01 – 02 Dec 2015 Phoenix, AZ Credit Suisse TMT Conference 02 Feb 2016* Q1 FY16 Results 18 Feb 2016 Munich Annual General Meeting 03 May 2016* Q2 FY16 Results 02 Aug 2016* Q3 FY16 Results 30 Nov 2016* Q4 FY16 and FY 2016 Results * preliminary 472015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.
  • 48. Institutional Investor Relations contacts Dr. Jürgen Rebel Corporate Vice President  +49 89 234-21626 Investor Relations  juergen.rebel@infineon.com Joachim Binder Senior Director  +49 89 234-25649 Investor Relations  joachim.binder@infineon.com Holger Schmidt Manager  +49 89 234-22332 Investor Relations  holger.schmidt@infineon.com 482015-11-26 Copyright © Infineon Technologies AG 2015. All rights reserved.