London Roadshow
hosted by Liberum Capital
18 – 19 November 2013
Ulrich Pelzer
Corporate Vice President
Finance, Treasury & Investor Relations
Table of Contents
 Infineon Group Update
 PMM Presentation by Andreas Urschitz
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.
2013-11-18
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 2
Revenue Split by Division
Q4 FY 2013 revenue: EUR 1,053m
ATV
€ 455m
CCS
€ 129m
IPC
€ 197m
PMM
€ 271m
OOS+C&E*
€ 1m
* Other Operating Segments;
Corporate and Eliminations.
2013-11-18
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 3
Tight Customer Relationships are Based on
System Know-how and App Understanding
ATV
PMM
IPC
CCS
Distributors
2013-11-18
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Page 4
Infineon Holds Top Positions in All
Target Markets
Automotive
Power
Chip Card
#2
#1
#1
Renesas
Infineon
STMicro
Freescale
NXP
14%
9%
8%
7%
6%
12%
Infineon
Infineon
24.1%
23.8%
Toshiba
7%
NXP
Mitshubishi
7%
Samsung
STMicro
6%
STMicro
Fairchild
6%
SHHIC
22%
17%
6%
Automotive semiconductors in
calendar year 2012.
Power semiconductors and
modules in calendar year 2012.
Microcontroller-based smart
card ICs in calendar year 2012.
Source: Strategy Analytics,
April 2013.
Source: IHS, September 2013.
Source: IHS, September 2013.
2013-11-18
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Page 5
Expected Growth Broadly In Line With
Historical Averages
ATV
IPC
PMM
CCS
>10% p.a.
>10% p.a.
~5% p.a.
Courtesy: Daimler AG
~7% p.a.
Infineon:
~ 8% p.a.
Sources: IHS, Strategy Analytics, ABI Research, Infineon.
2013-11-18
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Page 6
New Strategic Approach:
„Product to System“
Benefit for the customer
System
Efficiency
system-centric
System improvement
application-centric
System-in-Package
or System-on-Chip
component-centric
Component
2013-11-18
time
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Page 7
Segment Result Margin in FY13: 9.8%;
Remained Profitable Even in Q1 FY13
Revenue and Segment Result
[EUR m]
FY 2013 revenue split
by product category
+7%
982
851
12%
5%
1.022
1.053
11%
14%
918
7%
Power
116
Q4 FY12
44
68
Q1
Q2
Revenue
2013-11-18
117
148
Q3
Q4 FY13
Segment Result
eControl
RF
others
Segment Result Margin
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Page 8
Guidance for Q1 FY14 and FY 2014
Outlook Q1 FY14
Outlook FY 2014
(compared to FY 2013)
Revenue
Between
€960m and €1bn.
Increase between
7% and 11%.
Segment
Result
Margin
Between
8% and 10%.
Between
11% and 14%.
Investments in FY 2014
About €650m.
D&A in FY 2014
€500m or slightly above.
2013-11-18
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 9
Investor and Analyst Presentation
18 November 2013
Andreas Urschitz
Division President
Power Management & Multimarket (PMM)
Table of Contents
 PMM Segment Overview
 Growth Driver: Power Management
 Growth Driver: Mobile Devices
 Summary
2013-11-18
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 11
Power Management & Multimarket (PMM)
Financial Snapshot
Revenue and Segment Result development
[EUR m]
FY11 : 1,003
300
FY12 : 929
-7%
FY13 : 986
+6%
30%
25%
242
268
256
55
54
69
64
0
Q1
FY11
Q2
Q3
Q4
222
227
Q1 FY11
237
Q1 FY11
Q1 FY10
100
20%
Q1 FY09
200
233
15%
222
247
227
266
271
10%
5%
40
32
33
37
22
27
46
49
Q1
FY12
Q2
Q3
Q4
Q1
FY13
Q2
Q3
Q4
PMM revenue
PMM SR
0%
SR margin
 Revenue rebound in FY13 due to end of inventory correction and strong sales
of products used in mobile devices.
 Margin compression driven by cost of investment in capacity and higher OpEx.
2013-11-18
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Page 12
Top Customers and Distributors and
Revenue Split By Region
Major customers
Revenue split by region*
19%
7%
74%
Major distributors
EMEA
Americas
APAC (incl. Japan)
* Based on revenues by fulfillment region for FY 2013.
2013-11-18
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Page 13
PMM’s Broad Product Portfolio Covers a
Diverse Range of Applications
Revenue split* by application
Mobile
devices
Power
management
Mobile
infrastructure
* Based on revenues from FY13.
Portfolio: MOSFETs, Power ICs, RF switches, LNAs, Si-Mics, TVS diodes, RF power
2013-11-18
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Page 14
PMM Holds Leading Positions in Its Main
Product Segments
Competitive ranking and market share development
Standard Power MOSFETs
1.
2.
3.
4.
5.
Int’l Rect.
Infineon
Toshiba
Fairchild
STM
12.8%
12.7%
11%
10%
9%
Silicon Microphones
1.
2.
3.
4.
5.
Knowles
Infineon
ADI
Omron
Bosch
RF Power
58%
31%
5%
3%
1%
1.
2.
3.
4.
5.
Freescale
NXP
Infineon
SEDI1)
Cree
31%
9%
11%
13%
50%
23%
16%
7%
3%
16%
16%
2010
2012
11%
10%
2%
2008
2010
2012
Source: IHS, “Power Semiconductor
Discretes & Modules – 2013”, Sept 2013.
2013-11-18
2008
2010
2012
Source: IHS, “MEMS Microphones go
Mainstream”, 2012.
2007
Source: ABI Research, “RF Power
Amplifiers“, 2012.
1) Sumitomo Electric Device Innovations
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 15
Table of Contents
 PMM Segment Overview
 Growth Driver: Power Management
 Growth Driver: Mobile Devices
 Summary
2013-11-18
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 16
Despite Dip in 2012, Long-Term Market
Outlook Is Healthy, Especially for AC/DC
Power management market forecast by application
[USD bn]
CAGR(12-16) = 3.7%
2010
2011
2012
2013
DC/DC
2014
2015
2016
7.8
25.0
7.3
23.3
6.8
23.1
6.2
21.7
5.5
20.3
5.2
20.2
5.6
5.3
22.1
22.2
CAGR(12-16) = 8.6%
2017
AC/DC
Source: IHS: “Power Management Market Tracker – Q3 2013
2013-11-18
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Page 17
Power Management Shifting From
Components to Smart System Solutions
Evolution of power management requirements
Components
Smart system solution
Focus on cost/performance
Focus on smart system solutions
 Customers focus on performance of
individual components and component
standardization to reduce costs.
 Customers focus on total cost of
ownership, flexibility of system
architecture and time to market.
 Supplier balances cost/performance
through chip shrink and package
innovation.
 Supplier offers smart system solutions
by optimizing combination of IC and
switch.
Analog control
 Analog controllers offer sufficient
performance at attractive prices, but
without programmability.
2013-11-18
Digital control
 Programmable digital controllers enable
differentiation, better performance and
faster development cycles.
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Page 18
DC/DC Example Shows That Smart System
Solution Drives Higher Content
2x*
Future
Infineon’s differentiation
Smart system solution
Present
2x*
Digital controller
Component-based system
Integrated Driver + MOSFETs
Digital controller
Past
Drivers
Components
MOSFETs
MOSFETs
time
* Estimated increase in Infineon-addressable BOM value for typical system.
2013-11-18
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Page 19
Smart System Solution Drives Higher
Content Also In AC/DC
Efficiency ratings for power supplies
according to “80 PLUS” Initiative
Content required to meet “80
PLUS” efficiency ratings
Efficiency
BOM
value*
Up to 40%
higher than
bronze
98%
Titanium
94%
Digital
controller
CoolMOS™
Analog
controller
CoolMOS™
90%
Gold
86%
82%
Silver
Bronze
78%
0%
50%
Load
100%
Source: 80 PLUS program. www.plugloadsolutions.com
Data points represent actual efficiency requirements as defined by the
80 PLUS program. Curves are for illustrative purposes only.
2013-11-18
 Analog controller
 Standard HV-MOSFET
* Estimated increase in Infineon-addressable BOM value for typical system
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Page 20
DrBlade: Innovative Packaging Enables
Higher Levels of System Integration
DrBlade: the revolutionary chip-embedding technology
 Design-wins for DrBlade, in combination with our digital power management ICs.
 Based on Infineon’s outstanding manufacturing technology: thin wafer, galvanic
electroplating, laser-drilling, die-attach by diffusion-soldering.
Bottom view
Top view
System view
©Infineon Technologies AG
©Infineon Technologies AG
computer tomography
 Target applications: DC/DC voltage regulation for computing and telecom.
 Contains driver IC and OptiMOS™ MOSFET half-bridge.
 Small package size, low profile (0.6 mm), high power density, RoHS1) 2016 compliant.
1) RoHS = Restriction of Hazardous Substances.
2013-11-18
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Page 21
Table of Contents
 PMM Segment Overview
 Growth Driver: Power Management
 Growth Driver: Mobile Devices
 Summary
2013-11-18
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 22
Our Business With RF Components, Si-Mics
and Power Semis Fueled by Mobile Devices
Smartphones
Tablets*
[units m]
[units m]
CAGR(12-16) = 18.4%
1400
CAGR(12-16) = 34.9%
500
1375
1275
1200
400
1150
1000
1000
331
300
800
600
398
263
700
200
184
400
100
200
0
0
2012
2013
2014
2015
2012
2016
Source: Strategy Analytics: “Global Smartphone Sales Forecast for 88
Countries: 2007 to 2017”, September 2013.
2013-11-18
120
2013
2014
2015
2016
The chart was created by Infineon based on Gartner research.
Source: Gartner: “Forecast: Desk-based PCs, Notebooks, Ultramobiles,
and Tablets, Worldwide, 2011 – 2017”, 3Q13 Update, September 2013.
*
Including Utility Tablets, Basic Tablets and Premium Tablets.
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Page 23
Higher Functionality in Mobile Devices
Requires Additional Infineon Components
Feature phone
Smartphones
Infineon’s addressable content per phone
MOSFETs and power management ICs
Silicon MEMS microphones
Up to $2
Smart high-density
charger
TVS diodes
High-density
charger
RF switches
Low-noise amplifiers (LNA)
2 microphones*
1-2 microphones*
2-3
microphones*
ESD protection
ESD protection
ESD protection
1 microphone
ESD protection
8-12
RF switch ports
15-20
RF switch ports
2-4
RF switch ports
1 LNA
2-3 LNAs
GSM
WCDMA
LTE
25-30
RF switch ports
3-10 LNAs
LTE advanced
* Does not include headsets, which typically require an additional microphone.
2013-11-18
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Page 24
Space-constrained Mobile Devices Require
Components With Smaller Footprints
High-density packaging for Low Noise Amplifiers
Future
Printed circuit board
Laminate
eWLB package
-75%*
~6 mm
2.6 mm
Present
~6 mm
Past
-50%*
3.2 mm
1.6 mm x 3.2 mm
* Reduction in complete LNA footprint per successive package generation
Comments
 Future mobile devices are expected to require up to 8 LNAs to handle global
LTE Advanced requirements. LNAs are also used for GPS and WiFi.
 eWLB package integrates both LNA and associated discretes.
2013-11-18
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Page 25
Fast Growth of Silicon Microphone Business
Via Partnerships with Microphone Vendors
Units shipped by Infineon
[units m]
Business model
CAGR(08-12) = 99%
800
600
400
200
0
2008
2009
2010
2011
2012
MEMS,
ASIC
Assembled MEMS
microphone
Mobile
devices
Source: IHS, “MEMS Microphones go Mainstream”, 2012.
Comments
 Over 1 billion units shipped since 2008.
 From 2008 to 2012, market share increased from 2% to 31%.
 Innovative business model of enabling microphone companies to
serve mobile device OEMs.
2013-11-18
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Page 26
PMM Aims to Outgrow Its Core Markets
Power Management
Computing
Lighting
TAM:
Mobile Communications
Charger
Mobile devices
> 7% p.a.
PMM:
TAM:
Cellular infrastructure
> 7% p.a.
> 10% p.a.
Source: IHS, ABI Research, Infineon.
2013-11-18
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Page 27
Table of Contents
 PMM Segment Overview
 Growth Driver: Power Management
 Growth Driver: Mobile Devices
 Summary
2013-11-18
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 28
Summary
Revenue and Earnings Power
 Revenue growth back on track, Segment Result margin
again between 15 and 20 percent.
 Diverse customer base, balanced end-market exposure.
Growth drivers
 Increasing requirements for power management driving
content growth per successive generation.
 Higher functionality in mobile devices requires additional
Infineon components.
Differentiators
 Smart system solutions combining digital control
(Primarion, .dp) with leading discretes portfolio.
 High-integration packaging technologies (DrBlade, eWLB).
 Innovative business models (silicon microphone).
2013-11-18
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Page 29