Fourth Quarter FY 2011
Quarterly Update
Infineon Technologies AG
Investor Relations
 Infineon at a Glance
 Growth Outlook and Margin Resilience
 Results and Outlook
16 Nov 2011
Copyright © Infineon Technologies 2011
2010. All rights reserved.
Page 2
Revenue Split by Division
Full FY 2011 revenue: EUR 3,997m
ATV
€ 1,552m
IMM
€ 1,800m
CCS
€ 428m
OOS + C&E
€ 217m
16 Nov 2011
2011 All rights reserved.
Copyright © Infineon Technologies 2010.
Page 3
Another Quarter of Solid Financial
Performance
[EUR m]
Q3 FY11
Q4 FY11
FY 2011
Revenue
1,043
1,038
3,997
212
195
786
20.3%
18.8%
19.7%
Net Income*
190
125
1,119
Investment
319
273
887
-8
97
106
Gross Cash
2,585
2,692
2,692
Net Cash
2,246
2,387
2,387
Total Segment
Result
Total SR Margin
1043
1038
FCF from cont.
operations
212
Q3 FY11
Revenue
195
Q4 FY11
Segment Result
* Net Income FY 2011 includes a book gain of EUR 352m from the sale of WLS to Intel Mobile Communications.
Net Income Q4 FY 2011 and FY 2011 include EUR 122m loss from discontinued operations, net of income taxes.
16 Nov 2011
Copyright © Infineon Technologies 2011
2010. All rights reserved.
Page 4
Tight Customer Relationships are Based on
System Knowhow and App Understanding
ATV
IMM
CCS
Distributors
16 Nov 2011
2011 All rights reserved.
Copyright © Infineon Technologies 2010.
Page 5
Infineon Holds Top Positions in All Target
Markets
Automotive
Power
Chip Card
#2
#1
#1
14%
Renesas
Infineon
9%
11%
Infineon
Toshiba
7%
Samsung
21%
21%
Freescale
8%
STMicro
7%
NXP
STMicro
8%
Mitsubishi
7%
STM
NXP
7%
27%
Infineon
Vishay
6%
Renesas
18%
8%
Calendar Year 2010.
Calendar Year 2010.
Calendar Year 2010.
Source: Strategy Analytics, April 2011.
Source: IMS Research, August 2011.
Source: IMS Research, August 2011.
16 Nov 2011
2011 All rights reserved.
Copyright © Infineon Technologies 2010.
Page 6
 Infineon at a Glance
 Growth Outlook and Margin Resilience
 Results and Outlook
16 Nov 2011
Copyright © Infineon Technologies 2011
2010. All rights reserved.
Page 7
New Era: Multiple Factors Driving Demand
for Power Semiconductors
'90 – '10
'10 – '30
Changes
 Electrification of powertrain fuels demand
for high-power semis in cars and doubles
silicon content.
Courtesy: Tesla
 Shift towards renewable energies requires
orders of magnitude more high-power
semis per MW of power generated.
 Higher efficiency in power conversion
lowers CO2, material and electricity costs.
 Stronger demand for goods containing
power semis due to faster increase in
standard of living in BRIC countries.
16 Nov 2011
Copyright © Infineon Technologies 2011. All rights reserved.
Page 8
Growth: Rising Global Car Production and
Silicon Content Drive Market
Global car production
[units m]
CAGR(10-15)
= 6%
Source: IHS CSM, Oct. 2011
Cars ≤ 3.5t
68.8
65.7
5
11
15
6
11
13
16
16
20
22
20
16
2007
57.5
5
7
9
85.2
80.3
71.9
74.8
6
9
12
7
8
13
7
9
14
26
28
19
20
89.8
94.8
8
9
8
9
15
8
9
16
31
33
36
39
19
20
21
22
16
 Highest growth in car units out of
APAC.
 Semi content per car: USD 289 in
2010 versus USD 339 in 2015.
 Auto semi market growth drivers:
safety, powertrain and body.
2008
2009
2010
2011
2012
2013
2014
2015
Europe
APAC
North America
Japan
ROW
Total
Semi value per car
[USD per car]
Semi market by segment
[USD bn]
CAGR(10-15)
= 3%
Powertrain
276
285
280
289
304
318
328
336
339
Safety
Body
Infotainment
2007
2008
2009
2010
2011
2012
2013
2014
2015
Source: Strategy Analytics, Oct. 2011; includes semiconductor sensors
16 Nov 2011
5.1
2011 All rights reserved.
Copyright © Infineon Technologies 2010.
2015
6.7
4.7
CAGR
+10.4%
8.4
7.1
7.5
5.3
11.3
CAGR
+11.2%
CAGR
+8.5%
CAGR
+7.3%
2010
Source: Strategy Analytics, Oct. 2011
Page 9
By Region, Main Growth Drivers are BRIC
Markets and Recovery in North America
Automotive semiconductor market forecast
[USD bn]
CAGR(10-15) =
10%
32.3
34.5
29.4
4.0
Brazil, Russia
and RoW
CAGR
+15%
9.1
APAC w/o
Japan
CAGR
+15%
4.9
Japan
CAGR
+6%
7.4
N. America
CAGR
+10%
9.1
Europe
CAGR
+6%
26.4
21.5
2010
23.4
2011
2012
2013
2014
2015
Source: Strategy Analytics, October 2011; includes semiconductor sensors.
16 Nov 2011
2011 All rights reserved.
Copyright © Infineon Technologies 2010.
Page 10
Electric Vehicles (EV) and Hybrid EVs
(HEV) Drive Semiconductor Demand
ICE vs. EV/HEV Semiconductor BOM
9
8
7
xEV SC BOM
$749
1
1.8x
500
4.0
3
2
$611
600
400
$342
Auto SC BOM 3.1
$280
700
5.0
2.7x
5
4
6.8
5.9
6
800
7.6
300
2.1
0.8
1.1
1.2
200
# of HEV/EV Cars [Mu]
100
0
0
 Fuel cost, CO2 reduction and price are
main drivers for EVs and HEVs.
 Semiconductor bill-of-material of an
EV/HEV is 2 to 3 times higher than total
semiconductor bill-of-material on an ICE.
 50-80% related to IGBT and diode chips
in state-of-the-art module packages.
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Source: SA, Oct. 2011
5.4
HEV and EV Market
[cars m]
1st Gen HEV
2nd Gen HEV
3rd Gen HEV
EV
4.8
4.1
3.5
3.0
Market growth
fostered by
new vehicle
launches
2.5
0.6
2008
16 Nov 2011
0.8
2009
1.1
1.4
Fast followers enter
HEV market
2010
2011
2012
2013
2014
2015
2016
2017
Source: IHS, Oct. 2011
2011 All rights reserved.
Copyright © Infineon Technologies 2010.
Page 11
Conversion of Electrical Energy
Application
Frequency
1000
100
10
DC voltage
1 [Hz] 1000
100
10
Grid
1 [V]
Products (expl.)
50/60 Hz
discrete IGBT
SiC diode
EconoPACK™
IHM module
CoolMOS™
Power IC
OptiMOS™
16 Nov 2011
2011 All rights reserved.
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Page 12
Semi Content per MW in Wind Turbines
Much Higher Than in Trad. Power Plants
Nuclear plant, coal-fired plant
Wind turbines
50/60 Hz
Generator
AC
 No fluctuation in amplitude and
frequency. Direct grid coupling possible.
 Power semiconductor content:
~ €200 per MW.
 Semiconductors primarily used for
uninterruptable power supplies.
16 Nov 2011
AC
50/60 Hz
DC
AC
 Fluctuations in amplitude and frequency.
 Power semiconductor content:
 ~ €3,000 per MW for gear-based
turbines;
 ~ €9,000 per MW for direct
conversion turbines.
2011 All rights reserved.
Copyright © Infineon Technologies 2010.
Page 13
Motor Drives and Traction: Focus on Efficient
Power Conversion and RPM Control
Direct AC connection
50/60 Hz
AC/DC/AC conversion
variable frequency
50/60 Hz
AC
DC
AC
 About 60% of industrial energy is used by electrical motors.
 For each $1 spent to purchase a more efficient electrical motor, $100 of energy cost can be
saved during the life of such motor.
 Conventional motor drives are being replaced by intelligent inverter-based drives, saving up
to 40% energy.
 AC/DC/AC conversion allows permanent control to match output with the needs.
 Power semiconductor content: ~ €5,000 per MW or $10-100k, depending on application.
16 Nov 2011
2011 All rights reserved.
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Page 14
10% Growth or More p.a.
Expected for Infineon
ATV
IMM
CCS
Courtesy: Hyundai
ATV:
~10% p.a.
Infineon:
16 Nov 2011
IMM:
> 10% p.a.
CCS:
~5-7% p.a.
≥ 10% p.a.
Copyright © Infineon Technologies 2011. All rights reserved.
Page 15
4 Reasons for Sustainable Profitability ─
#1
High Barriers to Entry
Long product
life cycles
System knowhow
and understanding
Courtesy: Siemens
Courtesy: BMW
 For many markets we
address, deliveries of
semis need to be
ensured for very long
periods of time:


For car industry:
7 to 24 years;
For train industry:
about 15 years.
16 Nov 2011
Strong quality and
reliability req's
 Both deep and wide
know-how and
understanding of our
customers' applications
needed for making best
in class solutions:

e.g. HEV/EV needs
both automotive and
industrial expertise.
Copyright © Infineon Technologies 2011. All rights reserved.
 Products need to
reliably perform well in
the field over longer
periods of time:

Airbag reliability
required as long as
the car is in use;

Wind turbines should
function 30 years.
Page 16
Semiconductors – Core Enablers
of Innovation and Higher Functionality
#2
Energy Efficiency
 Power supplies
More advanced power
semiconductors allow
smaller, denser, lighter
and more efficient
power supplies.
 VSD
More precise and
efficient RPM-control
versus mechanical
transmission.
16 Nov 2011
Mobility
 Recuperation
Implemented in trains
for years; brought to
cars by the advent of
HEV/EVs.
 Power steering
EPS is replacing
hydraulic-mechanical
power steering allowing
more flexibility in car
design and less power
consumption.
Copyright © Infineon Technologies 2011. All rights reserved.
Security
 Identification
Chip-based passports
and national ID cards
allow much higher
level of security
compared with paperonly ID cards.
 Brand protection
Chip-based
authentication of
accessories, e.g.
batteries.
Page 17
Semis Represent a Negligible Part of
the Value of the End Product
#3
Example 1: mid-range car
Courtesy: Volkswagen
Courtesy: Siemens
€25,000
Semi BoM:
€250
16 Nov 2011
Example 2: high-speed train
€6,000,000
1.0%
of product
value
Semi BoM:
€100,000
Copyright © Infineon Technologies 2011. All rights reserved.
EUR 6m
1.7%
of product
value
Page 18
Infineon's Core Competencies ─
Power Semiconductors and eControl
#4
Design and manufacturing of
power semis tightly coupled
Core competence power
 Thin-wafer technology
 Super-junction MOSFETs
 Silicon-Carbide (SiC)
Manufacturing
Design
 IGBT module packaging
Core competence eControl
 Automotive real-time 32-bit
microcontroller (TriCore™)
 Automotive 32-bit multi-core
design (AURIX™)
 Low-power security controller
 Safety Guard
16 Nov 2011
Copyright © Infineon Technologies 2011. All rights reserved.
Page 19
Sustainable Profitability:
We Will Keep High Margins
#1
#2
Semis enable
high functionality
High barriers
to entry
#3
Value of semis
small relative
to end product
#4
Infineon's
core competencies: Power
and eControl
SR target margins
ATV:
IMM:
15–20%
20–25%
CCS:
10–15%
Courtesy: Tesla
Infineon:
 ~20% under normal industry conditions
 ~15% through cycle
16 Nov 2011
Copyright © Infineon Technologies 2011. All rights reserved.
Page 20
Target Operating Model
Revenue
FY 2011
FY 2012e
Longer term
EUR 3.997bn
Decreasing by
a mid
single-digit %
 10%
growth p.a.
Gross margin
41.4%
< 40%
Flat or
increasing
vs FY 2012
R&D
11.0%
of sales
Increasing
by 5 – 10%
Low-to-mid
teens %
of sales
SG&A
11.2%
of sales
Increasing
by 5 – 10%
Low-teens %
of sales
Total Segment Result
margin
19.7%
Low to mid
teens %
Increase
vs FY 2012
16 Nov 2011
Copyright © Infineon Technologies 2011. All rights reserved.
Page 21
 Infineon at a Glance
 Growth Outlook and Margin Resilience
 Results and Outlook
16 Nov 2011
Copyright © Infineon Technologies 2011
2010. All rights reserved.
Page 22
Q4 FY11: Maintained Solid
Total Segment Result Margin
Revenue and Segment Result
[EUR m]
FY11 revenue split
by product category
+10%
994
1043
1038
942
922
18%
19%
20%
20%
19%
171
177
202
212
195
Q4
FY10
Q1
Q2
Q3
Q4
FY11
Revenue
16 Nov 2011
Power
Total Segment Result
Copyright © Infineon Technologies 2011
2010. All rights reserved.
eControl
ASICs, others
Total SR margin
Page 23
All Segments Contribute to
Total Segment Result
ATV
IMM
+16%
+8%
CCS
[EUR m]
340
354
392
410
396
436
423
433
472
472
+1%
24%
17%
17%
19%
20%
17%
58
59
74
80
66
Q4 Q1
FY10
Q2
Q3
Q4
FY11
Revenue
16 Nov 2011
25%
25%
25%
24%
107
108
116
113
Q4 Q1
FY10
Q2
Q3
Q4
FY11
106
Total Segment Result
Copyright © Infineon Technologies 2011
2010. All rights reserved.
98
107
107
116
10%
13%
13%
14%
Q4 Q1
FY10
Q2
Q3
Q4
FY11
115
10%
Total SR margin
Page 24
OpEx In-line With Target Operating Model
S and G&A
R&D
[EUR m]
15%
120
14%
100
80
13%
60
12%
40
11%
20
0
10%
Q4
Q1
Q2
Q3
Q4
FY10
FY11
General & Administration
16 Nov 2011
Q4
FY10
Selling
Q1
R&D
Copyright © Infineon Technologies 2011
2010. All rights reserved.
Q2
Q3
Q4
FY11
% of sales
Page 25
Working Capital*
Working Capital
Inventories
[EUR m]
0
-100
[EUR m]
Q4 FY10
Q1
Q2
Q3
Q4 FY11
-200
-300
Comparable historical
figures not available.
-400
500
80
400
60
300
200
-500
[days]
-600
100
-700
0
Comparable historical
figures not available.
20
0
Q4 FY10
Trade and other receivables
[EUR m]
600
500
Comparable historical
figures not available.
300
0
Q1
Q2
Q3
Q4 FY11
Q4 FY11
Trade and other payables
80
700
600
500
80
0
Q4 FY10
Q3
[days]
20
100
Q2
[EUR m]
40
200
Q1
[days]
60
400
40
400
300
200
100
0
60
Comparable historical
figures not available.
40
20
0
Q4 FY10
Q1
Q2
Q3
Q4 FY11
* For definition please see slide 32 in appendix.
16 Nov 2011
Copyright © Infineon Technologies 2011
2010. All rights reserved.
Page 26
Investments Remain High to Exploit
Growth Potential
Investments*
[EUR m]
887
D&A
~ flat
Q1
Q2
325
Q3
336
364
FY 2010
FY 2011
~ 430
Q4
FY 2010
FY 2011
Guidance
FY 2012
Guidance
FY 2012
Guidance for Investments:
Guidance for D&A:
 FY13: below investments in FY12
 FY13: increase compared to FY12
 beyond FY13: 10 – 15% of sales
 beyond FY13: 10 – 15% of sales
* For definition please see slide 32 in appendix.
16 Nov 2011
2011 All rights reserved.
Copyright © Infineon Technologies 2010.
Page 27
High Gross and Net Cash Position
Maintained
Liquidity Development
Net Cash
Q4
FY10
Q1
FY11
191
2387
2585
2335
2691
127
212
1293
1293
1669
133
243
1331
1331
1727
153
243
2335
129
227
114*
2387
Equity-linked
2692
Debt
2246
Gross Cash
2246
[EUR m]
Q2
Q3
Q4
FY11
* Consists of Convertible Bond 2014 (nominal value EUR 137m; book value EUR 114m).
 Gross and net cash increased despite accelerated capital returns in Q4 FY11.
 FY 2011: Repurchases of nominal EUR 59m of CB 2014 (~26m shares
underlying) and 4m shares for total of €199m in cash.
16 Nov 2011
2011 All rights reserved.
Copyright © Infineon Technologies 2010.
Page 28
Guidance for Q1 and FY 2012
Outlook Q1 FY12
Outlook FY 2012
(compared to Q4 FY11)
(compared to FY 2011)
Revenue
Revenue to decline
by about 10%.
Mid-single digit
percentage decline.
Total
Segment
Result
Margin
13 to 14% of sales.
Low-to-mid
teens percentage.
16 Nov 2011
2011 All rights reserved.
Copyright © Infineon Technologies 2010.
Page 29
New Structure of IMM
as of 1 January 2012
IMM
 Industry-oriented applications
 Drives and traction
 Renewable energy
Power Management &
Multimarket (PMM)
Applications
Industrial Power Control
(IPC)
 Consumer-oriented applications
 Power supplies for notebooks,
PCs, server
 Lighting
 Mobile infrastructure
 IGBT modules
 Discrete IGBTs
 Driver ICs
Products
 Power MOSFETs
 Power ICs
 Digital power management
 LED drivers
 ASICs
16 Nov 2011
Copyright © Infineon Technologies 2011. All rights reserved.
Page 30
Notes

Investments =
'Purchase of property, plant and equipment'
+ 'Purchase of intangible assets and other assets' incl. capitalization of R&D expenses

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 accounts receivables (net)' / 'revenue') * 90

DPO (days payables outstanding; quarter-to-date) =
('Trade payables' / ['Cost of goods sold' + 'Purchase of property, plant and equipment']) * 90
16 Nov 2011
Copyright © Infineon Technologies 2011
2010. All rights reserved.
Page 32
Infineon Consolidated Statements of
Operations (IFRS) (unaudited)
3 mo nt hs end ed
in Euro million; except for the per share data
Jun 3 0 , 11
12 mo nt hs end ed
Sep 3 0 , 10
Sep 3 0 , 11
Sep 3 0 , 10
1,038
(619)
419
(110)
(119)
10
(21)
179
12
(22)
3
1,043
(613)
430
(109)
(114)
2
(8)
201
13
(14)
(1)
942
(563)
379
(114)
(103)
7
(15)
154
5
(16)
1
3,997
(2,343)
1,654
(439)
(449)
23
(53)
736
39
(65)
4
3,295
(2,058)
1,237
(399)
(386)
18
(122)
348
29
(95)
8
172
199
144
714
290
75
(24)
49
30
22
247
175
193
744
312
(122)
15
197
375
348
125
190
390
1,119
660
125
190
390
1,119
1
659
1,085
1,087
1,087
1,086
1,087
0.23
0.16
0.18
0.68
0.29
(0.11)
0.01
0.18
0.35
0.32
0.12
0.17
0.36
1.03
0.61
Diluted earnings per share (in Euro ) fro m co ntinuing o peratio ns
1,152
0.22
1,157
0.16
1,172
0.16
1,159
0.66
1,171
0.28
Diluted earnings per share (in Euro ) fro m disco ntinued o peratio ns
(0.11)
0.01
0.17
0.32
0.30
0.11
0.17
0.33
0.98
0.58
Revenue
Co st o f go o ds so ld
G ro s s pro f it
Research and develo pment expenses
Selling, general and administrative expenses
Other o perating inco me
Other o perating expense
O pe ra t ing inc o m e
Financial inco me
Financial expense
Inco me fro m investments acco unted fo r using the equity metho d
Inc o m e f ro m c o nt inuing o pe ra t io ns be f o re inc o m e
t a xe s
Inco me tax benefit (expense)
Inc o m e f ro m c o nt inuing o pe ra t io ns
Inco me (lo ss) fro m disco ntinued o peratio ns, net o f inco me taxes
N e t inc o m e
A ttributable to :
No n-co ntro lling interests
Shareho lders o f Infineo n Techno lo gies A G
B asic earnings per share attributable to shareho lders o f Infineo n
Techno lo gies A G (in Euro ):
Weighted average shares o utstanding (in millio n) – basic
B asic earnings per share (in Euro ) fro m co ntinuing o peratio ns
B asic earnings per share (in Euro ) fro m disco ntinued o peratio ns
B a s ic e a rnings pe r s ha re ( in E uro )
Diluted earnings per share attributable to shareho lders o f
Infineo n Techno lo gies A G (in Euro ):
Weighted average shares o utstanding (in millio n) – diluted
D ilut e d e a rnings pe r s ha re ( in E uro )
16 Nov 2011
Sep 3 0 , 11
2011 All rights reserved.
Copyright © Infineon Technologies 2010.
Page 33
Infineon Consolidated Statements of
Financial Position (IFRS) (unaudited)
in Euro million
S e p 3 0 , 11
J un 3 0 , 11
S e p 3 0 , 10
822
1,763
828
584
631
15
4
101
4
4,168
1,185
103
31
221
124
31
1,695
5,863
1,667
60
687
622
514
7
72
88
495
3,590
838
87
35
308
119
16
1,403
4,993
A ssets:
Current assets:
Cash and cash equivalents
Financial investments
Trade and o ther receivables
therin: Trade acco unts receivables
Invento ries
Inco me tax receivable
Other current financial assets
Other current assets
A ssets classified as held fo r sale
T o t a l c urre nt a s s e t s
P ro perty, plant and equipment
Go o dwill and o ther intangible assets
Investments acco unted fo r using the equity metho d
Deferred tax assets
Other financial assets
Other assets
T o t a l no n- c urre nt a s s e t s
T o tal assets
1,007
1,685
593
510
507
30
2
142
5
3,971
1,343
111
34
262
124
28
1,902
5,873
Lia bilit ie s a nd e quit y:
Current liabilities:
Sho rt-term debt and current maturities o f lo ng-term debt
Trade and o ther payables
therin: Trade acco unts payables
Current pro visio ns
Inco me tax payable
Other current financial liabilities
Other current liabilities
Liabilities classified as held fo r sale
T o t a l c urre nt lia bilit ie s
Lo ng-term debt
P ensio n plans and similar co mmitments
Deferred tax liabilities
No n-current pro visio ns
Other financial liabilities
Other liabilities
T o t a l no n- c urre nt lia bilit ie s
T o t a l lia bilit ie s
Shareho lders' equity:
Ordinary share capital
A dditio nal paid-in capital
A ccumulated deficit
Other reserves
Own shares
P ut o ptio ns o n o wn shares
E quit y a t t ribut a ble t o s ha re ho lde rs o f Inf ine o n T e c hno lo gie s A G
T o t a l lia bilit ie s a nd e quit y
16 Nov 2011
68
83
133
735
720
810
59
159
174
2,005
237
168
7
26
4
71
513
2,518
760
718
619
113
121
315
2,011
256
147
9
45
6
69
532
2,543
665
659
553
111
16
153
177
1,808
263
146
11
55
6
79
560
2,368
2,173
5,854
(4,514)
10
(26)
(142)
3,355
5,873
2,173
5,875
(4,619)
4
(113)
3,320
5,863
2,173
6,048
(5,613)
17
2,625
4,993
2011 All rights reserved.
Copyright © Infineon Technologies 2010.
Page 34
Infineon Consolidated Statements of Cash
Flows (IFRS) (unaudited)
3 mo nt hs end ed
in Euro million
Sep 3 0 , 11
N e t inc o m e
Less: net inco me (lo ss) fro m disco ntinued o peratio ns, net o f inco me taxes
Jun 3 0 , 11
Sep 3 0 , 10
125
122
190
(15)
390
(197)
98
(75)
7
2
(1)
(3)
1
1
15
6
(11)
(1)
39
26
(5)
11
(2)
6
361
135
496
94
24
4
(2)
(2)
1
5
(5)
(20)
1
31
50
(10)
(13)
6
(12)
(16)
311
(32)
279
85
(49)
10
(14)
(1)
4
6
(8)
34
92
114
(80)
19
3
(1)
(8)
399
(12)
387
(887)
962
2
(13)
(260)
7
(189)
(33)
(222)
(550)
321
(11)
(308)
(548)
(43)
(591)
2
1
(8)
(155)
(1)
(161)
(8)
(169)
(21)
(50)
1
(26)
4
(92)
(92)
182
3
822
1,007
2
(17)
(16)
(1)
4
(28)
(28)
(340)
1,162
822
2
2
(13)
1
(8)
(8)
210
5
1,452
1,667
A djustments to reco ncile net inco me to net cash pro vided by o perating activities:
Depreciatio n and amo rtizatio n
Inco me tax
Interest result
P ro visio n fo r (reco very o f) do ubtful acco unts
Lo sses (gains) o n sales o f financial investments
Lo sses (gains) o n sales o f businesses and interests in subsidiaries
Lo sses in co nnectio n with the deco nso lidatio n o f A LTIS
Lo sses (gains) o n dispo sals o f pro perty, plant and equipment
Inco me fro m investments acco unted fo r using the equity metho d
Dividends received fro m asso ciated co mpanies
Impairment charges
Share-based co mpensatio n
Changes in trade and o ther receivables
Changes in invento ries
Changes in o ther current assets
Changes in trade and o ther payables
Changes in pro visio ns
Changes in o ther current liabilities
Changes in o ther assets and liabilities
Interest received
Interest paid
Inco me tax paid
N e t c a s h pro v ide d by o pe ra t ing a c t iv it ie s f ro m c o nt inuing o pe ra t io ns
N e t c a s h pro v ide d by ( us e d in) o pe ra t ing a c t iv it ie s f ro m dis c o nt inue d
o pe ra t io ns
N e t c a s h pro v ide d by o pe ra t ing a c t iv it ie s
Cash flo ws fro m investing activities:
P urchases o f financial investments
P ro ceeds fro m sales o f financial investments
P ro ceeds fro m sales o f businesses and interests in subsidiaries
P urchases o f intangible assets and o ther assets
P urchases o f pro perty, plant and equipment
P ro ceeds fro m sales o f pro perty, plant and equipment and o ther assets
N e t c a s h us e d in inv e s t ing a c t iv it ie s f ro m c o nt inuing o pe ra t io ns
N e t c a s h us e d in inv e s t ing a c t iv it ie s f ro m dis c o nt inue d o pe ra t io ns
N e t c a s h us e d in inv e s t ing a c t iv it ie s
Cash flo ws fro m financing activities:
Net change in related party financial receivables and payables
P ro ceeds fro m issuance o f no n-current debt
Repayments o f no n-current debt
Repurchase o f co nvertible subo rdinated bo nds
Change in restricted cash
P urchases o f o wn shares
P ro ceeds fro m the issuance o f put o ptio ns fo r o wn shares
Dividend payments
N e t c a s h us e d in f ina nc ing a c t iv it ie s f ro m c o nt inuing o pe ra t io ns
N e t c a s h pro v ide d by f ina nc ing a c t iv it ie s f ro m dis c o nt inue d o pe ra t io ns
N e t c a s h us e d in f ina nc ing a c t iv it ie s
Net increase (decrease) in cash and cash equivalents
Effect o f fo reign exchange rate changes o n cash and cash equivalents
Cash and cash equivalents at beginning o f perio d
C a s h a nd c a s h e quiv a le nt s a t e nd o f pe rio d
16 Nov 2011
2011 All rights reserved.
Copyright © Infineon Technologies 2010.
Page 35
Financial Calendar
Date
Location
Event
29-30 Nov 2011
Scottsdale, AZ
Credit Suisse Technology Conference
* preliminary date
01 Feb 2012*
08 Mar 2012*
Q1 FY12 Results
Munich
03 May 2012*
28 Jun 2012
Annual General Meeting
Q2 FY12 Results
Munich
IFX Day (Capital Markets Day)
31 Jul 2012*
Q3 FY12 Results
13 Nov 2012*
Q4 FY12 Results
16 Nov 2011
2011 All rights reserved.
Copyright © Infineon Technologies 2010.
Page 36
Institutional Investor Relations Contacts
Ulrich Pelzer
Corporate Vice President, Corporate Development & Investor Relations
 +49 89 234-26153
 ulrich.pelzer@infineon.com
Joachim Binder
Senior Director, Investor Relations
 +49 89 234-25649
 joachim.binder@infineon.com
Aleksandar Josic
Manager, Investor Relations
 +49 89 234-83045
 aleksandar.josic@infineon.com
Holger Schmidt
Manager, Investor Relations
 +49 89 234-22332
16 Nov 2011
 holger.schmidt@infineon.com
2011 All rights reserved.
Copyright © Infineon Technologies 2010.
Page 37
Disclaimer
This presentation was prepared as of 16 November 2011 and is current only as of that date.
This presentation includes forward-looking statements and assumptions about the future of
Infineon’s business and the industry in which we operate. These include statements and
assumptions relating to general economic conditions, future developments in the world
semiconductor market, our ability to manage our costs and to achieve our growth targets, the
resolution of Qimonda’s insolvency proceedings and the liabilities we may face as a result of
Qimonda’s insolvency, the benefits of research and development alliances and activities, our
planned levels of future investment, the introduction of new technology at our facilities, our
continuing ability to offer commercially viable products, and our expected or projected future
results.
These forward-looking statements are subject to a number of uncertainties, such as broader
economic developments, including the market environment; trends in demand and prices for
semiconductors generally and for our products in particular, as well as for the end-products,
such as automobiles, drives, renewable energies and consumer electronics, that incorporate our
products; the success of our development efforts, both alone and with partners; the success of
our efforts to introduce new production processes at our facilities; the actions of competitors;
the continued availability of adequate funds; any mergers, acquisitions or dispositions we may
undertake; the outcome of antitrust investigations and litigation matters; and the resolution of
Qimonda’s insolvency proceedings; as well as the other factors mentioned in this presentation
and those disclosed at other occasions.
As a result, Infineon’s actual results could differ materially from those contained in or suggested
by these forward-looking statements. You are cautioned not to place undue reliance on these
forward-looking statements. Infineon does not undertake any obligation to publicly update or
revise any forward-looking statements in light of developments which differ from those
anticipated.
16 Nov 2011
2011 All rights reserved.
Copyright © Infineon Technologies 2010.
Page 38
Roadshow and Webcast
London, 22 November 2011
Jochen Hanebeck
Division President Automotive
Table of Contents
 Overview
 Growth Drivers and Market Opportunities
 Summary
07 June 2011
Copyright © Infineon Technologies 2011. All rights reserved.
Page 2
Infineon Automotive is Driven by Three
Major Growth Trends
Infineon Automotive ─ We make cars …
Clean
Safe
 Best-in-class powertrain
solutions for reduced
emissions.
 Leading hybrid and
electric drivetrain
products.
 Energy saving electrification of relais and
mechanical functions.
07 June 2011
Affordable
 Innovative sensors:
Magnetics, MEMS and
Radar.
 Optimized chipsets for
low cost cars and
E-bikes.
 Multicore architectures.
 Easy to integrate software and reference kits.
 SOC solutions.
 Highest safety standard
compliance (SIL3 /
ASIL-D).
Copyright © Infineon Technologies 2011. All rights reserved.
 Local expert teams for
emerging players.
Page 3
Infineon Automotive Offers Complete
Product Portfolio: Sensors, µC and Power
Revenue split* by product category
µC
Sensors
Power (discrete to high
integration) incl. HEV/EV
* Based on revenue from trailing 12 months period October 2010 to September 2011.
07 June 2011
Copyright © Infineon Technologies 2011. All rights reserved.
Page 4
Infineon Automotive Focuses on
Applications Powertrain, Safety and Body
Revenue split* by application
Powertrain
Safety
Body
* Based on revenue from trailing 12 months period October 2010 to September 2011.
07 June 2011
Copyright © Infineon Technologies 2011. All rights reserved.
Page 5
ATV Revenue Development
Revenue and Segment Result development
[EUR m]
Revenue
410
391
396
354
340
333
316
Segment Result
Revenue split*
by region
279
37
51
54
58
59
74
80
65
Europe (incl. ROW)
NAFTA
APAC incl. Japan
Q1 FY10
Q2 FY10
Q3 FY10
Q4 FY10
Q1 FY11
Q2 FY11
Q3 FY11
Q4 FY11
Germany
* Based on revenue from trailing 12 months period October 2010 to September 2011.
Copyright © Infineon Technologies 2011. All rights reserved.
Page 6
Table of Contents
 Overview
 Growth Drivers and Market Opportunities
 Summary
07 June 2011
Copyright © Infineon Technologies 2011. All rights reserved.
Page 7
Growth: Rising Global Car Production and
Silicon Content Drive Market
Global car production
[units m]
CAGR(10-15)
= 6%
Source: IHS CSM, Oct. 2011
Cars ≤ 3.5t
68.8
65.7
5
11
15
6
11
13
16
16
20
22
20
16
2007
57.5
5
7
9
85.2
80.3
71.9
74.8
6
9
12
7
8
13
7
9
14
26
28
19
20
89.8
94.8
8
9
8
9
15
8
9
16
31
33
36
39
19
20
21
22
16
 Highest growth in car units out of
APAC.
 Semi content per car: USD 289 in
2010 versus USD 339 in 2015.
 Auto semi market growth drivers:
safety, powertrain and body.
2008
2009
2010
2011
2012
2013
2014
2015
Europe
APAC
North America
Japan
ROW
Total
Semi value per car
[USD per car]
Semi market by segment
[USD bn]
CAGR(10-15)
= 3%
Powertrain
276
285
280
289
304
318
328
336
339
Safety
Body
Infotainment
2007
2008
2009
2010
2011
2012
2013
2014
2015
Source: Strategy Analytics, Oct. 2011; includes semiconductor sensors
16 Nov 2011
5.1
Copyright © Infineon Technologies 2011. All rights reserved.
2015
6.7
4.7
CAGR
+10.4%
8.4
7.1
7.5
5.3
11.3
CAGR
+11.2%
CAGR
+8.5%
CAGR
+7.3%
2010
Source: Strategy Analytics, Oct. 2011
Page 8
By Region, Main Growth Drivers are BRIC
Markets and Recovery in North America
Automotive semiconductor market forecast
[USD bn]
CAGR(10-15) =
10%
32.3
34.5
29.4
4.0
Brazil, Russia
and RoW
CAGR
+15%
9.1
APAC w/o
Japan
CAGR
+15%
4.9
Japan
CAGR
+6%
7.4
N. America
CAGR
+10%
9.1
Europe
CAGR
+6%
26.4
21.5
2010
23.4
2011
2012
2013
2014
2015
Source: Strategy Analytics, October 2011; includes semiconductor sensors.
16 Nov 2011
Copyright © Infineon Technologies 2011. All rights reserved.
Page 9
ICEs still a Growth Business New Opportunities by HEV/EV
Electromobility
Classical car market
Vehicle production
Semi content
HEV / EV
Courtesy: Bosch
TAM:
~
5-6% p.a.
TAM:
~
3% p.a.
Courtesy: Hyundai
TAM:
> 25% p.a.
small units but high
growth
TAM:
8-9% p.a.
ATV:
2%-pt p.a.
~10% p.a.
Sources: CSM, Strategy Analytics , October 2011.
07 June 2011
Copyright © Infineon Technologies 2011. All rights reserved.
Page 10
Electric Vehicles (EV) and Hybrid EVs
(HEV) Drive Semiconductor Demand
ICE vs. EV/HEV semiconductor BOM
9
8
7
xEV SC BOM
$749
1
1.8x
500
4.0
3
2
$611
600
400
$342
Auto SC BOM 3.1
$280
700
5.0
2.7x
5
4
6.8
5.9
6
800
7.6
300
2.1
0.8
1.1
1.2
200
# of HEV/EV Cars [Mu]
100
0
0
 Fuel cost, CO2 reduction and price are
main drivers for EVs and HEVs.
 Semiconductor bill-of-material of an
EV/HEV is 2 to 3 times higher than total
semiconductor bill-of-material on an ICE.
 50-80% related to IGBT and diode chips
in state-of-the-art module packages.
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Source: SA, Oct. 2011
5.4
HEV and EV Market
[cars m]
1st Gen HEV
2nd Gen HEV
3rd Gen HEV
EV
4.8
4.1
3.5
3.0
Market growth
fostered by
new vehicle
launches
2.5
0.6
2008
16 Nov 2011
0.8
2009
1.1
1.4
Fast followers enter
HEV market
2010
2011
2012
2013
2014
2015
2016
2017
Source: IHS, Oct. 2011
Copyright © Infineon Technologies 2011. All rights reserved.
Page 11
Electrification Doubles Semiconductor
Content per Car
Semiconductor content per car in 2015
[USD]
1000
800
645
600
400
670
517
339
200
0
Standard car
Mild Hybrid
Full Hybrid
EV
Source: Strategy Analytics, August/October 2011.
Copyright © Infineon Technologies 2011. All rights reserved.
Page 12
Three Quarters of Incremental Semi
Content in Hybrid Vehicles is Power
Semiconductor bill-of-material for ICE and hybrid vehicles in 2015
Sensors
µC
Power 76%
MUX
Analog
645 USD
16%
306
Other 26%
ASIC 13%
339
Sensors 13%
339
µC 23%
Power 21%
Internal Combustion Engine (ICE)
Hybrid Electrical Vehicle
Source: Strategy Analytics, October 2011.
18.11.2011
Copyright © Infineon Technologies 2011. All rights reserved.
Page 13
Hyundai and Kia Hybrid Cars Powered by
HybridPACK™1 from Infineon
Hyundai Sonata Hybrid
Two modules per car at
400A and 200A current rating.
Kia Optima Hybrid
6 Gate Drivers per IGBT Module (12 per car)
Copyright © Infineon Technologies 2011. All rights reserved.
Page 14
Paradigm Shift:
IGBT's are the Injectors of Tomorrow
Today
Fuel Injectors in Combustion Engines
Tomorrow
IGBT's in Electrical Inverters
 Driver of vehicle performance:
Mechanical components and
subsystems
 Driver of vehicle performance:
Semiconductor components and
subsystems
 Assisted by semiconductors
 Assisted by mechanicals
 On-board electrical power: ~1 kW
 On-board electrical power: ~100 kW
07 June 2011
Copyright © Infineon Technologies 2011. All rights reserved.
Page 15
System Know-How and Advanced Technology
Differentiate IFX along the Control Loop
Compute
Microcontrollers
High-integration
Flash technologies
High-integration
BCD technologies
Actuate
Power Semiconductors
High-power
semiconductors
and drivers
Sense
Silicon Sensors
Integrated giant magneto
SiGe-based
resistance sensors
77/79GHz Radar
transceiver
Copyright © Infineon Technologies 2011. All rights reserved.
Page 16
New 32-Bit 65nm Multi-Core Microcontroller
Available
New multicore architecture is the
foundation of Infineon´s next
generation MCU family
 Up to 3 processor cores to share the
application load
 Lockstep cores
 Further enhanced hardware safety
mechanisms
 Target applications:

Powertrain (engines, transmission, xEV)

Safety (airbag, braking, power steering,
driver assistance)
 Large Tier1s already committed to
new architecture for powertrain
platforms
 Development devices shipped
Copyright © Infineon Technologies 2011. All rights reserved.
Page 17
Infineon is First to Offer 130nm HighIntegration Platform for Automotive
Today’s airbag ECU
Airbag System-on-Chip
 Airbag market is high volume and only very few players are able to compete.
 Customization and highest integration levels for logic and power are key for
success.
 Lastest 130nm SPT9 technology is industry benchmark for System-on-Chip
developments.
 Leading Safety tier1s acknowledge Infineon’s leadership and award their
business to us.
Copyright © Infineon Technologies 2011. All rights reserved.
Page 18
Infineon Differentiates With System KnowHow and Technology Leadership
Former Window Lift Generation
Functional Integration as SoC
(chip-by-chip solution)
(monolithic solution)
VQFN-48 Package
Smallest Window Lift Solution in the World
Additional markets targeted by SPT9 SoC:
Copyright © Infineon Technologies 2011. All rights reserved.
Page 19
Design-Wins in All Major Regions
for Our Next-Generation RASIC Platform
9
Distance Warning Systems
Million units
8
7
6
5
4
3
Source: Bosch
2
CAGR
1
0
2009
10-15
: 38%
Source:Bosch
Strategy Analytics, Oct. 2011
Source:
2010
2011
2012
2013
2014
2015
2016
2017
2018
Superiority of the IFX radar solution is based upon
reliability, scalability and a highly innovative roadmap.
Copyright © Infineon Technologies 2011. All rights reserved.
Page 20
Table of Contents
 Overview
 Growth Drivers and Market Opportunities
 Summary
Copyright © Infineon Technologies 2011. All rights reserved.
Page 21
Infineon Automotive – Your Trusted
Partner for Automotive Applications
Global No. 2 for automotive semiconductors.
Broad innovative product portfolio, leading edge
technologies and system expertise.
Disproportionately high exposure to fastest growing
OEMs/Tier1s.
Strategic partnerships on all levels of the value chain.
Automotive Excellence:
Most comprehensive quality program in the industry.
Strong growth perspective driven by low-cost cars and
HEV/EV.
Copyright © Infineon Technologies 2011. All rights reserved.
Page 22