Roadshow and Tutorial
Zurich – Lugano – Milano – Trieste
hosted by UniCredit Capital Markets & Investment Banking
Investor Presentation for Q3 FY 2007
and
“Power
Semiconductors”
Joachim W. Binder
Senior Director
Investor Relations
Disclaimer
This presentation was prepared as of July 27, 2007 and is current only as of that date.
This presentation includes forward-looking statements about the future of Infineon’s business and the industry in which
it operates. These include statements relating to future developments in the world semiconductor market, including the
market for memory products, Infineon’s future growth, the benefits of research and development alliances and
activities, Infineon’s planned levels of future investment in the expansion and modernization of its production capacity,
the introduction of new technology at its facilities, the continuing transitioning of its production processes to smaller
structure sizes, cost savings related to such transitioning and other initiatives, Infineon’s successful development of
technology based on industry standards, Infineon’s ability to offer commercially viable products based on its technology,
Infineon’s ability to achieve its cost savings and growth targets, and the impact of the carve-out of Qimonda, the
group’s memory products business, its initial public offering, and any further sales of Qimonda shares or other
corporate financing measures in that regard.
These forward-looking statements are subject to a number of uncertainties, including trends in demand and prices for
semiconductors generally and for Infineon’s products in particular, the success of Infineon’s development efforts, both
alone and with partners, the success of Infineon’s efforts to introduce new production processes, the actions of
competitors, the availability of funds for planned expansion efforts, and the outcome of antitrust investigations and
litigation matters, as well as the other factors mentioned in this presentation and those described in the “Risk Factors”
section of the annual report of Infineon on Form 20-F filed with the U.S. Securities and Exchange Commission on
November 30, 2006 or contained in the company’s quarterly reports. As a result, Infineon’s actual results could differ
materially from those contained in 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 because of new
information, future events or otherwise.
18-Sep-2007
Copyright © Infineon Technologies 2007. All rights reserved.
Slide 2
Table of Contents
„ Group Financials and Targets
„ Infineon‘s Focus Areas
† Energy Efficiency
† Communications
† Security
18-Sep-2007
Copyright © Infineon Technologies 2007. All rights reserved.
Slide 3
Third Quarter FY 2007 Results:
Revenues of EUR 1.75 bn; EBIT of EUR -280 m
[EUR m]
Infineon Group
Infineon
[EUR m]
(incl. Qimonda)
(excl. Qimonda)
2,290
15%
2,290 2,131
1,993 1,972
-2%
-43
1%
28
2%
49
10%
1,962
1,731 1,674
1%
30
10%
216
1,751
2%
49
-7%
-122
Q1
FY06
Q3
FY06
Q4
FY06
Q1
FY07
Automotive, Industrial &
Multimarket
[EUR m]
Q2
FY07
0%
-4
0%
-8%
-77
-5%
-16%
-280
-10%
-2%
-43
Q3
FY07
[EUR m]
8%
57
Q3
FY06
18-Sep-2007
740
9%
64
Q4
FY06
710
8%
55
Q1
FY07
741
9%
66
Q2
FY07
752
11%
81
Q3
FY07
236
-40%
-120
0%
-2
-5%
-51
-7%
-122
-1%
-9
-16%
1%-174 2%
49
28
-3%
-28
1%
30
1%
13
15%
10%
216
-5%
2%
5%
49
-15%
2%
49
238
259
-24%
-57
-22%
-53
-13%
-34
Q3
FY07
Qimonda
100%
80%
[EUR m]
1,232
50%
1,173
40%
30%
984
977
20%
60%
40%
-23%
-61
35%
Q2
Q1Q4 Q2Q1 Q3 Q2 Q4 Q3 Q1 Q4Q2 Q1
Q3
FY05 FY06
FY06FY06
FY06
FY06
FY06FY06
FY07 FY06
FY07 FY07
FY07 FY07
Communication
Solutions
266
16%
14%
12%
10%
8%
6%
4%
2%
0%
1,962
-25%
Q4
FY05
297
714
2,131
45%
978 1,011 1,962
25%
-15%
Q2
FY06
1,993
1,0581,972
994
958
1,674
5%
-20%
Q4
FY05
996
1,731
963
1,065
20%
0%
10%
100
17%
204*)
19%
225*)
740
8%
77*)
10%
0%
-40%
-293*)
-10%
-20%
-20%
-30%
-40%
-40%
-60%
-50%
Q3
Q4
Q1
Q2
Q3
FY06 FY06 FY07 FY07 FY07
Copyright © Infineon Technologies 2007. All rights reserved.
Q3
Q4
Q1
Q2
Q3
FY06 FY06 FY07 FY07 FY07
*)Net of minority interests
Slide 4
Infineon excluding Qimonda
Fourth Quarter FY 2007 Outlook
IFX
COM
Revenues and EBIT excluding Qimonda and before charges are
expected to increase.
„ Revenues and EBIT to improve strongly q-o-q
„ Continued revenue increase in wireless business given ramp of
platform shipments; wireline business to be about flat
AIM
„ Revenues to increase q-o-q; EBIT margin to be close to 10%
„ Automotive to be about flat; Industrial & Multimarket to increase;
Security & ASIC to decrease
OOS,
C&E
„ Combined EBIT loss before charges broadly unchanged q-o-q
„ Charges are expected to be insignificant
18-Sep-2007
Copyright © Infineon Technologies 2007. All rights reserved.
Slide 5
Infineon excluding Qimonda
Group Results and FY 2007, FY 2008 Outlook
FY 2005
FY 2006*)
Sales
3,933
4,114
Gross Profit
1,187
1,308
R&D
902
816
750-800
SG&A
449
536
500-540
EBIT
-305
-217
~0
FY 2007
FY 2008
[EUR m]
(Gross margin)
(EBIT margin)
(30%)
(-8%)
(32%)
(-5%)
Infineon defines EBIT as Earnings (loss) Before Interest and Taxes.
*)
FY2006: Includes net charges of € 199 million relating primarily to various impairments and restructuring measures as well as expenses
incurred in connection with the insolvency of BenQ Mobile Germany and the IPO of Qimonda.
18-Sep-2007
Copyright © Infineon Technologies 2007. All rights reserved.
Slide 6
Infineon excluding Qimonda
Gross Cash, Debt, CapEx and D&A
354
555
694
890
378
870
391
1332
Q4 FY 06
Q1 FY 07
Gross Cash
Gross Debt
Q2 FY 07
Convertible
Q3 FY 07
Net Debt
Q1 FY07
Q2 FY07
Q3 FY07
FY 2007E FY 2008
onward
CapEx
105
114
110
~ 550
10-12%
of sales
D&A
162
152
150
~ 600
in line
with
CapEx
/Sales (%)
/Sales (%)
18-Sep-2007
1481
0
[EUR m]
CapEx and
D&A
269
400
1330
800
1585
1200
694 555
524
[EUR m]
1600
Financial
structure
for the past
quarters
540
2000
10.9%
16.9%
11.7%
15.5%
Copyright © Infineon Technologies 2007. All rights reserved.
10.9%
14.8%
Slide 7
Table of Contents
„ Group Financials and Targets
„ Infineon‘s Focus Areas
† Energy Efficiency
† Communications
† Security
18-Sep-2007
Copyright © Infineon Technologies 2007. All rights reserved.
Slide 8
Infineon Businesses
Communication
Solutions
Automotive, Industrial &
Multimarket
Mobile Phone Platforms
Automotive
Feature Phone
Microcontroller
Entry Phone
Automotive Power
Mobile Software
Sense & Control
RF Solutions
Industrial & Multimarket
RF Engine
Power Management & Drives
Tuner Systems
Discrete Semiconductors
RF Power
Broadband
Access
18-Sep-2007
Security & ASICs
ASIC Design & Security
Chip Card & Security ICs
Copyright © Infineon Technologies 2007. All rights reserved.
Slide 9
Global Energy Trends:
Substantial Needs and Highest Level of Awareness
„ The cost of energy generation and the price of
electricity continue to rise.
#1
„ Electricity consumption is growing 2.6% p.a.
Dwindling resources drive
growth in energy savings
and renewables.
#2
„ Saving energy is increasingly crucial in
industrial, commercial and household
applications.
„ Pollution, environmental protection and climate
change are global concerns.
Pollution and climate change
drive demand for "clean"
solutions.
18-Sep-2007
„ Renewables are on the rise in energy
generation.
„ Reducing the waste of energy helps cut back on
energy generation and its harmful emissions.
This is quickly becoming a standard
requirement for all areas of public and private
life (e.g. Kyoto Protocol).
Copyright © Infineon Technologies 2007. All rights reserved.
Slide 10
Electricity consumption
can be cut by 25-30%
through extensive use
of power
semiconductors – equal
to the demand of the
USA.
Energy Consumption [bn kWh]
Energy Demand and Electricity Consumption are on
the Rise – We Can Help to "Do More With Less"
Total
Energy
20
Electrical
Energy
16
12
25-30% savings
potential from
extensive use of
electronic power
conversion
8
4
30 to 40% of
total energy
0
1800
1900
2000
2100
Infineon contributes to
efficient energy management and the
reduction of pollution and emissions.
„ We deliver innovative, high performance solutions with best-in-class technologies that
help our customers save energy and reduce pollution.
„ We enable the use of limited resources as efficiently as possible.
Source: Fraunhofer Institute, IISP, LES-Flyer, 2004
18-Sep-2007
Copyright © Infineon Technologies 2007. All rights reserved.
Slide 11
Our Products Help Reduce Losses Along the
Entire Energy Distribution Chain
Energy
Generation
Energy
Distribution
Energy Consumption
Losses
n
AC/AC
o
q
AC/DC/AC
Power Supply
AC/DC
Losses
r
Point of Load
DC/DC
Losses
Losses
p
Losses
Motor Drives,
Traction
AC/DC/AC
~10%
18-Sep-2007
Copyright © Infineon Technologies 2007. All rights reserved.
Slide 12
Energy Generation:
Traditional Power Plant Versus Renewables
Coal-fired Plant, Nuclear Plant, etc.
Wind Mill, Solar Cell, Hydro Power, etc.
AC
AC
AC
„ Almost no fluctuations in amplitude and
frequency.
„ Direct grid coupling possible.
„ 1000 MW for state-of-the-art power plants.
„ Semi content comparatively low.
18-Sep-2007
1
DC
AC
„ Permanent fluctuations in amplitude and
frequency.
„ Typically around 2 MW per wind turbine.
„ Semi content EUR ~5000 per wind turbine.
„ Resulting in EUR ~2.5 m per 1000 MW.
„ Market size: EUR ~38 m in 2006.
„ Market growth rate > 20% p.a.
Copyright © Infineon Technologies 2007. All rights reserved.
Slide 13
Energy Generation:
Products and Customers
1
Infineon‘s Products
EconoPACK
PowerBLOCK
Rectifier
IHM
Target Customers
Competitors
„ Infineon
„ ABB Semiconductor
„ Fuji Electric
„ IXYS
„ Mitsubishi
„ Semikron
18-Sep-2007
IHV
„ ABB
„ Alstom
„ ASP (CH) to Solon AG
„ Mastervolt (GER)
„ SEG (GER) to Ecotecnia (E)
„ Siemens
„ SMA Technologie AG (GER)
„ Sputnik Engineering GmbH (CH)
„ Sunways AG
„ Xantrex (CAN)
Copyright © Infineon Technologies 2007. All rights reserved.
Slide 14
Energy Distribution:
Grid Coupling and Long Range Energy Transport
Traditionally
High-Voltage Direct Current (HVDC)
380 kV AC
AC
2
100-500 kV DC
AC
AC
(in future 800 kV)
DC
DC
AC
„ HVDC transmission is advantageous for long-distance bulk-power delivery, synchronous
interconnections (grid coupling), long-submarine cable crossings.
„ Breakeven distance for 2000 MW power line is about 800 km.
„ On each side of a HVDC 2000 to 8000 thyristors are required resulting in a average semiconductor
content of USD 4 to 16 m.
„ In China, annual investments of USD 10 bn in transmission systems are being made.
„ Major growth areas are China, India, Brasil, Congo, and USA.
18-Sep-2007
Copyright © Infineon Technologies 2007. All rights reserved.
Slide 15
Energy Distribution:
Products and Customers
2
Infineon‘s Products
Easy2B
PrimePACK
ETT
LTT
Target Customers
Competitors
„ Infineon
„ ABB Semiconductor
„ Fuji Electric
„ IXYS
„ Mitsubishi
„ Powerex
„ SanRex
„ Semikron
18-Sep-2007
IGBT Stack
„ ABB
„ Alstom Transport
„ Areva
„ Bombardier
„ Eaton Powerware
„ Rockwell
„ Siemens
„ Schneider Electric
Copyright © Infineon Technologies 2007. All rights reserved.
Slide 16
Light-triggered Thyristor:
Housing and Trigger Cable
18-Sep-2007
Copyright © Infineon Technologies 2007. All rights reserved.
2
Slide 17
HVDC Valve Hall at „Moyle Interconnector“
Transmission Link
2
HVDC Module
High-voltage direct current
module with maximum 26 LTTs
included.
18-Sep-2007
Copyright © Infineon Technologies 2007. All rights reserved.
Slide 18
„Moyle Interconnector“ Transmission Link
Between Nothern Ireland and Scotland
2
ƒ Contract awarded to
Siemens for
construction of
converter stations in
1999.
ƒ Infineon provided lighttriggered thyristors.
ƒ Full operation since
2002.
ƒ 2 x 250 MW.
ƒ 63 km distance.
18-Sep-2007
Copyright © Infineon Technologies 2007. All rights reserved.
Slide 19
HVDC Transmission Link Between The
Netherlands and UK
2
Siemens PTD and Dutch consortium partner BAM
Civiel are supplying the converter stations for
the BritNed interconnector project.
The 260km long HVDC submarine cable link
between the Isle of Grain in Kent, southeast
England, and Maasvlakte near Rotterdam will
allow power transmission of 1000 MW at a DC
transmission voltage of 450 kV as from the year
2010. Customer are Britain’s National Grid and
Dutch grid operator TenneT.
18-Sep-2007
Copyright © Infineon Technologies 2007. All rights reserved.
Slide 20
HVDC Transmission Link Between Funen and
Zealand
2
Siemens PTD has been
awarded an order by the
TSO Energinet.dk in
Denmark to supply the
HVDC converter stations
for the Storebaelt
project which links the
islands of Fuen and
Zealand.
The 600 MW HVDC link
is scheduled to go into
operation April 2010 and
will connect the Western
with the Eastern Grid.
18-Sep-2007
Copyright © Infineon Technologies 2007. All rights reserved.
Slide 21
HVDC Transmission Link Between New Jersey
and Long Island
2
At the end of June 2007,
Siemens PTD
commissions the new
HVDC transmission link
between New Jersey and
Long Island, New York.
Thanks to this HVDC link,
Long Island will receive
power from the grid of
New Jersey in a low-loss
and environmentally
compatible way, which
will help to strengthen the
“backbone” of Long
Island’s transmission
system.
18-Sep-2007
Copyright © Infineon Technologies 2007. All rights reserved.
Slide 22
HVDC Transmission Link Between Ballia and
New Delhi
2
Siemens will soon supply environmentally
friendly electricity to the energy-hungry region
surrounding India’s capital city of New Delhi.
The new transmission line reaches over a
distance of about 780 kilometers from Ballia in
eastern Uttar Pradesh to a location near New
Delhi.
The new long-distance HVDC transmission link is
the second system that Siemens is building in
India. The first HVCD transmission route was the
"East-South” long-distance link (2500 MW),
which still currently ranks as the second
longest HVDC transmission link in the
world. Since 2003, the Siemens system has
been transporting electrical energy with low loss
from the Talcher power plant complex in the
state of Orissa in the east of India over 1450 km
to the industrial region around Bangalore in the
south.
18-Sep-2007
Copyright © Infineon Technologies 2007. All rights reserved.
Slide 23
HVDC Transmission Link Between Yunnan and
Guangdong
2
With its new system for
the HVDC between the
province of Yunnan and
Guangdong Siemens
ventures into a new
dimension of HVDC
technology.
The system will be the
first in the world to
transmit electricity at
a DC voltage of 800
kV. At the same time
this project with a power
transmission capacity of
5000 MW will be the
long-distance HVDC link
with the world’s
highest ever power
capacity which has been
built.
18-Sep-2007
Copyright © Infineon Technologies 2007. All rights reserved.
Slide 24
Motor Drives and Traction: Focus on
Efficient Power Conversion and RPM Control
Direct AC Connection
50/60 Hz fixed
3
AC-DC-AC Conversion
50/60 Hz fixed
AC
variable frequency
DC
AC
„ About 60% of industrial energy is used by electrical motors.
„ For each USD 1 spent to purchase a motor, USD 100 are spent for energy cost during its lifetime.
„ 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.
„ 12.2 m industrial drives in 2007 with a CAGR of 9.8%. (source: IMS, December 2005)
„ Semiconductor content USD 10 to USD 100k, depending on application.
18-Sep-2007
Copyright © Infineon Technologies 2007. All rights reserved.
Slide 25
Motor Drives and Traction:
Products and Customers
3
Infineon‘s Products
CiPoS
ISOFACE
TrenchStop
EconoPACK
Target Customers
Competitors
„ Infineon
„ Fuji Electric
„ International Rectifier
„ Semikron
„ STMicroelectronics
„ Toshiba
18-Sep-2007
„ Baumüller
„ BSH (Bosch-Siemens Hausgeräte GmbH)
„ Electrolux
„ General Electric
„ Matsushita
„ Midea
„ Schneider Electric
„ Whirlpool
„ Yaskawa
Copyright © Infineon Technologies 2007. All rights reserved.
Slide 26
Power Supply:
Focus is on Efficient Power Conversion
Inefficient AC-DC Power Supply
AC:
230V
50Hz
DC:
HEAT
AC
48VDC
19VDC
12VDC
6VDC
Telecom
Notebook
Desktop
Mobile charger
4
Efficient AC-DC Power Supply
DC:
AC:
230V
50Hz
AC
48VDC
19VDC
12VDC
6VDC
Telecom
Notebook
Desktop
Mobile charger
DC
DC
„ More efficient semiconductor components allow lower conduction losses at higher switching
frequencies. This results in reduction of size of transformers, heat sinks and costs.
„ “Google managed to increase the typical efficiency of power supplies from 60-70% to at least 90%
efficiency, reducing lost energy by a factor of four.” (source: EETimes, Google)
„ 9.4 m server power supplies in 2007 with a CAGR of 10%. (source: iSuppli)
„ Average semiconductor content in server power supplies (800 W to 1000 W) is about USD 15.
„ Infineon serves all of the top-10 power supply manufacturers.
18-Sep-2007
Copyright © Infineon Technologies 2007. All rights reserved.
Slide 27
Power Supply:
Products and Customers
4
Infineon‘s Products
CoolMOS Family
CoolMOS TO220
Target Customers
Competitors
„ Infineon
„ Fairchild
„ International Rectifier
„ National Semiconductor
„ STMicroelectronic
18-Sep-2007
CoolSET
„ Alcatel-Lucent
„ Cisco
„ Delta
„ Lite-on
„ Sun Microsystems
Copyright © Infineon Technologies 2007. All rights reserved.
Slide 28
Point-of-Load:
DC/DC Power Conversion
Inefficient DC-DC Voltage Regulator
DC:
DC:
5 to 12V
3.3VDC
2.5VDC
1.8VDC
1.2VDC
Logic
DSP
Memory
CPU
5
Efficient DC-DC Voltage Regulator
DC:
DC:
5 to 12V
DC
DC
3.3VDC
2.5VDC
1.8VDC
1.2VDC
Logic
DSP
Memory
CPU
DC
DC
„ Processors (CPUs, graphics controller, DSL processors, etc.) are getting more complex, i.e. higher
number of transistors. Therefore, higher currents need to be handled leading to more power
MOSFETs per device.
„ PC motherboards are equipped with up to ten MOSFETs; graphics boards with up to four MOSFETs.
„ Points of load need to handle currents of 10 A to 50 A resulting in about 40 W to 200 W.
„ Semiconductor content per point of load is in the range of USD 1 to USD 6.
18-Sep-2007
Copyright © Infineon Technologies 2007. All rights reserved.
Slide 29
Point-of-Load:
Products and Customers
5
Infineon‘s Products
OptiMOS
OptiMOS2
OptiMOS3
OptiMOS-T
Target Customers
Competitors
„ Infineon
„ Fairchild
„ International Rectifier
„ National Semiconductor
„ STMicroelectronics
„ Volterra
18-Sep-2007
Lamp Ballast
„ Asus
„ Compal
„ Dell
„ Hipro
„ HP
„ Intel
„ Distributors
Copyright © Infineon Technologies 2007. All rights reserved.
Slide 30
CoolMOS for AC/DC
power conversion
Growth Driver for CoolMOS/OptiMOS:
More Applications Require Power Efficiency
CoolMOS
1st Gen.
CoolMOS
2nd Gen.
Server SMPS
Notebook
Adapter
Lighting
+107%
1998
OptiMOS for DC/DC
voltage regulation
CoolMOS
3rd Gen.
CoolMOS
4th Gen.
Computing
(PC Silverbox)
+113%
18-Sep-2007
5
Solar
Aviation
+41%
Gaming
+43%
Estimated
+20%
+32%
+32%
Total Sales Growth (yoy)
2000
2002
2004
2006
2008
Telecom
Modules
Notebook
Server
Motherboard
+685%
SFET1
+42%
Graphics Card
+107%
+4%
-16%
OptiMOS-1
Gaming
+20%
Estimated
+15%
Total Sales Growth (yoy)
OptiMOS-2
Copyright © Infineon Technologies 2007. All rights reserved.
OptiMOS-3
Slide 31
Lamp Ballast - Savings potential by Infineon
CoolMOS and Smart Ballast IC
Relative
Energy
consumption
100%
T12 lamp
∅ 38 mm
1st step
~30% Energy saving potential
70%
T8 lamp
∅ 26 mm
2nd step
50%
3rd step
modern
mirror-louvered
luminaires
4th step
35%
electronic control
gear (ECG)
30%
T5 lamp ∅ 16
mm + “Cut off”
ECG
5th step
15%
daylight linked
dimming system
Today 2006
In progress
Source: OSRAM; CLEMA: Lamp Ballast Guide; Infineon 2006
18-Sep-2007
Copyright © Infineon Technologies 2007. All rights reserved.
Slide 32
Gains of Market Share in Power Semiconductors
Market Share in Power Semiconductors
including Discrete Protected MOSFETs
Market Share in Power Semiconductors
excluding some Discr. Prot’ed MOSFETs
100%
8.10%
8.40%
9.40%
100%
90%
90%
80%
8.50%
2005
2006
80%
70%
70%
60%
60%
50%
50%
40%
40%
30%
30%
20%
20%
10%
10%
0%
0%
2003
others
Toshiba
International Rectifier
Infineon
2004
2005
Vishay
STM
Fairchild
Source: IMS 2006
18-Sep-2007
7.70%
others
Vishay
Toshiba
STMicro
Fairchild
Infineon
International Rectifier
Source: IMS 2007
Copyright © Infineon Technologies 2007. All rights reserved.
Slide 33
Infineon‘s Worldwide Market Shares for the
Power Semiconductor Market 2006
Total Power Semiconductors ($12,387 m)
„ #1
„ #2
„ #3
„ #4
Infineon
International Rectifier
Fairchild
STMicroelectronics
8.5%
8.3%
7.8%
7.5%
Total Transistors (market: $6,586 m)
„ #1
„ #2
„ #3
„ #4
Discrete IGBTs (market: $481 m)
„ #1
„ #2
„ #3
Infineon
International Rectifier
Fairchild
21.6%
18.5%
16.7%
Power Modules (market: $1,967 mio)
„ #1
„ #2
„ #3
Mitsubishi
Infineon
Semikron
30.3%
18.6%
15.1%
Protected MOSFETs (market: $293 mio)
„ #1
„ #2
„ #3
Infineon
International Rectifier
Toshiba
43.2%
11.2%
11.0%
Fairchild
International Rectifier
Toshiba
Infineon
13.7%
13.1%
10.0%
9.5%
IGBT Modules (market: $1651 m)
„ #1
„ #2
„ #3
Mitsubishi
Infineon
Fuji Electric
35.7%
19.3%
14.9%
Thyristor/Diode Modules (market: $258 m)
„ #1
„ #2
„ #3
Semikron
Infineon
SanRex
34.0%
18.3%
14.3%
High Power Thyristors (market: $154 m)
„ #1
„ #2
„ #3
Infineon
ABB Semiconductor
IXYS
31.4%
19.5%
9.8%
Source: IMS, 2007
18-Sep-2007
Copyright © Infineon Technologies 2007. All rights reserved.
Slide 34
Energy Conversion
Nuclear Plant
Coal-fired Plant
Wind Turbine
for AC:
• voltage
• frequency
• 1-phase, 3-phase
High-Voltage
AC Power Line
for DC:
• voltage
• polarity
Power Line
Photo Voltaic
Battery
HVDC
for DC:
• voltage
• polarity
Hybrid Car
Industrial Drives
Transportation
for AC:
• voltage
• frequency
• phase shift
• 1-phase, 3-phase
18-Sep-2007
Motherboard,
Graphics Board
Copyright © Infineon Technologies 2007. All rights reserved.
Home Appliances
Lighting
Medical
Power Supplies
Slide 35
Four Types of Conversion
U
U
U
t
Rectifier
t
~
U
AC
DC
t
U
=
t
t
Inverter
• different voltage
• different frequency
• phase shift
AC
DC
AC
DC
Voltage Regulator
• different voltage
• different polarity
U
U
t
U
~
U
DC
AC
=
t
U
Inverter
t
18-Sep-2007
t
Copyright © Infineon Technologies 2007. All rights reserved.
t
Slide 36
Automotive Microelectronics Trends: More Than
50% of $-Value of Electronics Are Semiconductors
450%
Growth (1995 = 100%)
400%
350%
Semiconductor
content of car
Value of
semiconductor per car
2008: USD 320
2020: USD 700
425%
CAGR
11.3%
300%
Electronics
255%
content of car
CAGR
250%
6.9%
200%
Car volume 144%
150%
CAGR
2.6%
100%
1995
1997
1999
2001
2003
2005
2007
2009
Source: ZVEI
18-Sep-2007
Copyright © Infineon Technologies 2007. All rights reserved.
Slide 37
Areas of Growth in Automotive
Market
Applications
Powertrain
Energy Efficiency
„ Fuel consumption
„ Energy recovery (hybrid)
(Power: 13% market share*)
[USD bn]
Regulation
„ Emission limits (CO2)
„ Safety (TPMS, emergency
call, VSC)
„ Toll collection
Driving Experience
„ Higher demand for safety
and comfort features
„ More devices per car
„ Proactive warning, assist and
intervention
17.5
18%
3.3
27%
4.8
29%
5.2
26%
4.7
25.8
CAGR
7.4%
2006
Powertrain
Body
16%
4.2
7.2
28%
31%
25%
CAGR
5%
8%
8.1
11%
6.3
5%
2011
Safety
Infotainment
Source: Strategy Analytics, 2006
Emerging Markets
„ China and India
18-Sep-2007
Copyright © Infineon Technologies 2007. All rights reserved.
„ 32-bit motor control
„ Hybrid drivetrain
Safety
(Power: 17% market share*)
„ Airbag, ABS & VSC
„ Driver assistance systems
Body
(Power: 35% market share*)
„ Electrical motor control
„ LEDs for lighting
Infotainment
„ Integration of consumer
devices into vehicle
*= Infineon own estimate.
Slide 38
Strong European Customer Relationships Due to
More Than 20 Years of Experience
Top 15 Global Automotive Suppliers 2006
Infineon’s Major Customers
Sales [USD bn]
29.69
Bosch
Delphi
24.4
Denso
24
23.88
Magna International
19.5
Johnson Controls
19.37
Aisin Seiki
17.84
Lear
15
Faurecia
Valeo
12.7
TRW
12.16
Siemens VDO
12.01
Continental
18-Sep-2007
11.47
Visteon
10.87
Yazaki
10.58
ThyssenKrupp
10.21
Source:
Automotive News,
June 2007
Copyright © Infineon Technologies 2007. All rights reserved.
Slide 39
Steady Gains of Market Share in Automotive in
the Past Six Years
100%
90%
80%
7.90%
8.20%
8.70%
9.10%
9.30%
9.50%
2001
2002
2003
2004
2005
2006
70%
60%
50%
40%
30%
20%
Freescale
Infineon
STM
Renesas
Bosch
Toshiba
others
10%
0%
Major
Major changes
changes from
from 2005
2005 to
to 2006
2006
„
Worldwide: Infineon reduced the distance to Freescale (#1) and enlarged the distance to STM (#3).
„
Europe: Infineon further strengthened #1 market position; STM outpaced Freescale as #2.
„
NAFTA: Infineon outpaced STM as #2.
„
Japan: Infineon assured #6 position and is the most successful non-Japanese automotive
semiconductor supplier.
„
Asean: Infineon improved market position to #3 from #4.
18-Sep-2007
Copyright © Infineon Technologies 2007. All rights reserved.
Source: Strategy Analytics, 2007
Slide 40
Automotive semiconductor market shares 2006 – IFX
outpaced STM in NAFTA
1.
2.
3.
4.
5.
6.
7.
8.
STM
10.3%
Freescale(3.) 8.5%
Infineon(4.)
7.8%
NXP(5.)
7.4%
NEC(2.)
7.3%
Toshiba
4.9%
Vishay
3.3%
Bosch
3.0%
1.
2.
3.
4.
5.
6.
7.
8.
Freescale
Infineon
STM
Renesas
NEC
Toshiba
NXP
Bosch
1.
2.
3.
4.
5.
6.
7.
11.1%
9.5%
8.4%
7.1%
7.0%
6.1%
6.1%
5.5%
Infineon ATV revenue
and market share
Infineon
STM(3.)
Freescale(2.)
Bosch
NXP
TI
NEC
15.0%
11.6%
11,1%
10.8%
8.3%
5.7%
4.5%
9.5%
8.2%
5.7%
3.9%
94
1.
2.
3.
4.
5.
6.
7.
8.
Renesas
Toshiba
NEC
Fujitsu
Sanken
Infineon
STM
NXP
18-Sep-2007
21.9%
18.1%
13.9%
7.6%
3.3%
3.0%
2.7%
2.7%
98
02
06
Source:
SA ATV semiconductor vendor ranking incl. ICE, IFX
Copyright © Infineon Technologies 2007. All rights reserved.
1.
2.
3.
4.
5.
6.
7.
Freescale
Infineon(3.)
STM(2.)
NXP
Delphi
NEC(7.)
TI(6.)
21.5%
8.4%
8.0%
5.6%
4.8%
3.3%
3.0%
Source: Strategy Analytics
Slide 41
Automotive semiconductor market share change
2005 vs. 2006 - IFX outperformed the market
Vishay
2006
2005
21.5%
8.4%
8.0%
5.6%
4.8%
22.3%
7.9%
8.5%
5.4%
5.0%
2006
2005
15.0%
11.6%
11.1%
10.8%
8.3%
14,8 %
11.4 %
11.5 %
10.7 %
8,0%
2006
2005
1. Renesas
2. Toshiba
…
21.9%
18.1%
…
22.4%
18.8%
…
Delphi
6. Infineon (6)
3.0%
2.8%
Bosch
7. STM
8. Philips
2.7%
2.7%
2.7%
2.7%
1.
2.
3.
4.
5.
Toshiba
TI
Freescale
Infineon (3)
STM (2)
NXP
Delphi
STM
Sanken
1.
2.
3.
4.
5.
Renesas
NXP
Infineon (1)
STM
Freescale
Bosch
NXP
NEC
Infineon
WW MS 2006: 9.5%
Freescale
-0.3%
18-Sep-2007
-0.2%
-0.1%
0.0%
0.1%
0.2%
0.3%
Copyright © Infineon Technologies 2007. All rights reserved.
0.4%
Source: SA Automotive Semiconductor Vendor
Slide 42
Market Shares in 2005
Automotive semiconductor vendor revenues 2005 vs.
2006 - IFX extended world wide No. 2 position
216
229
Vishay
2005
2006
1006
1077
Toshiba
575
TI
Automotive
Automotive
670
1382
1468
STM
Powertrain
Powertrain
185
193
Sanken
1159
1238
Renesas
960
NXP
Safety
Safety
Mgmt.
Mgmt.
1077
1130
1220
NEC
1525
Infineon
1674
No. 2
1868
1951
Freescale
202
195
Delphi
865
Bosch
0
500
Body
Body &
&
ConveConvenience
nience
Infotainment
Infotainment
962
1000
1500
2000
$M
Source: SA Automotive Semiconductor Vendor Market Shares in 2006
18-Sep-2007
Copyright © Infineon Technologies 2007. All rights reserved.
Slide 43
Legislation Forces CO2 Reduction for Cars:
Higher Fuel Efficiency Indispensable
CO2 Emission [g/km]
297
Porsche
190
183
165
162
158
152
150
146
BMW
Daimler-Chrysler
Ford
Volkswagen
General Motors
Renault-Dacia
Peugeot-Citroen
Fiat
0
100
new target by EU by 2012:
130 g/km
18-Sep-2007
200
300
400
previous target by European auto industry
(ACEA) by 2008: 140 g/km
Copyright © Infineon Technologies 2007. All rights reserved.
Slide 44
Hybrid Vehicles Enhance the Semiconductor
Content Per Vehicle Significantly
Hybrid Control Unit:
„
Motor Control Unit:
„
Power supply
„
„ Transceivers
DC/AC Converter
„ Driver IC's
„ Power modules – IGBTs, diodes
„ HAL-Sensors (position and current)
„ Microcontroller (e.g. TC1766)
„ Safety µm (e.g. XC800)
DC/DC Converter
„ Microcontroller (e.g. XC164)
„ Discretes - CoolMOS
„ Driver IC's
„
Battery Management:
„
„
„
Power supply
Transceiver
Microcontroller (e.g. XC164)
Smart battery switch
„
18-Sep-2007
44%
IGBT / Diodes
5%
4%
3%
Module Adder
Logic
IC's
Supply
34%
Sensors
Mild
Mild Hybrid
Hybrid Specific
Specific
Semiconductor
Semiconductor Content:
Content:
US$
US$ 100-250
100-250
Full
Full Hybrid
Hybrid Specific
Specific
Semiconductor
Semiconductor Content:
Content:
US$
US$ 400-1,000
400-1,000
Auxiliary Drives (e.g. AirCon):
„
10%
Power supply
Transceivers
Microcontroller (e.g. TC1766)
Microcontroller (e.g. XC164)
Power module
50-80%
50-80% related
related to
to IGBT
IGBT and
and
Diode
Diode in
in aa package
package
Copyright © Infineon Technologies 2007. All rights reserved.
Slide 45
Innovation and productivity gains through
Moore’s Law are reaching limits
Today
Minimum Feature Size [µm]
5.0
Physical
Limits
2.0
Sample Technologies
„ Thyristors
1.0
„ IGBT
„ DMOS/CD/BCD
„ 5V CMOS/BiCMOS
0.50
0.25
„ RF Bipolar
„ RF BiCMOS
0.13
0.065
ITRS
Roadmap
0.032
1995
18-Sep-2007
2000
2005
2010
2015
Copyright © Infineon Technologies 2007. All rights reserved.
Today ~50% of wafer area
attributed to advanced CMOS
„ Microprocessors, ASICs
„ Memory (DRAM, Flash)
Slide 46
Table of Contents
„ Group Financials and Targets
„ Infineon‘s Focus Areas
† Energy Efficiency
† Communications
† Security
18-Sep-2007
Copyright © Infineon Technologies 2007. All rights reserved.
Slide 47
Connectivity Drives Growth in Our Mobile Phone
and xDSL Businesses
Mobile Phones
[units m]
[units m]
1,261
1,349
259
165
115
810
2005
Other
2007
2008
GSM/GPRS
3
EDGE
2009
137
204
1,139
2006
[units m]
1,412
990
2005
Broadband CO
Broadband CPE
2010
WCDMA
102
2006
2007
114
82
133
2006
2007
2008
DSL CPE
Broadband Router
Cable CPE
Voice Terminal Adapters
IP Set Top Boxes
98
2009
2005
ADSL
2008
2009
VDSL
Multimedia
baseband
3
RF CMOS
transceiver
3
Power
management
3
3
3
Bluetooth
Protocol stack
Application
software
Source: ABI Research, Mobile Device Market Data, Q1 2007; Infonetics, Q3 2006
18-Sep-2007
Copyright © Infineon Technologies 2007. All rights reserved.
Slide 48
Complete Mobile Phone Platform Solutions
for Major Growth Markets
Platform
Platform
ULC1
Power
management
(incl. SRAM)
RF CMOS
transceiver
E-GOLDvoice
Baseband
ULC2
E-Powerlite
2.75G
EDGE
MP-E
S-GOLD2
SMARTi PM
SM-Power
Protocol stack
3
3
3
Ramp-up
3
3
3
MPElite
S-GOLDradio
2G / 2.5G
GSM / GPRS
E-GOLDradio
Target
Target
markets
markets
3
2H CY07
3G
UMTS
3.5G
HSDPA
MP-EU
MP-EH
S-GOLD2,
co-processor
S-GOLD3H
SMARTi PM,
SMARTi 3G
SMARTi 3GE
SM-Power1.6
SM-Power3
3
3
3
CY 2007+
Integrated in one chip
18-Sep-2007
Copyright © Infineon Technologies 2007. All rights reserved.
Slide 49
Successful Launch of Platforms
in Major Target Markets
EDGE
3G
ULC 1
ULC 2
Plus:
„ Design win at NOKIA with E-GOLDvoice single-chip for entry level phones.
„ Design wins across our ULC 1, ULC 2, EDGE and 3G platforms at major customers.
18-Sep-2007
Copyright © Infineon Technologies 2007. All rights reserved.
Slide 50
RF Transceiver
CMOS Leadership Turns Into Design-Wins
2G / 2.5G
GSM/GPRS
2.75G
EDGE
SMARTi SD
SMARTi SD2
SMARTi PM
SMARTi PM2
SMARTi PM+
130nm CMOS
3G
WCDMA
New
130nm CMOS
Customer
Air Interface
Two tier-1
OEMs
EDGE
(SMARTi PM+)
3.5G
HSDPA
4G
WiMAX/LTE
SMARTi 3G
SMARTi 3GE
SMARTi UE
SMARTi WiMAX
130nm CMOS
130nm CMOS
Three tier-1 WCDMA / WEDGE
OEMs
(SMARTi 3GE / 3G)
Tier-1 OEM
HEDGE
(SMARTi UE)
Multiple DW on EDGE / WEDGE /
IFX platforms
HEDGE
18-Sep-2007
Selection of major design wins
Copyright © Infineon Technologies 2007. All rights reserved.
New
New
130nm CMOS
Nr.1 worldwide in RF
Transceivers
9
World‘s first EDGE CMOS
RF Transceiver
in volume
9
World‘s first WCDMA
CMOS RF Transceiver in
volume
9
World‘s smallest EDGE
transceiver
9
Slide 51
Infineon‘s Four Growth Areas
in the Copper-based Environment
1. Bandwidth
2.Wireless Infrastructure
INCA_IP
INCA_IP
INCA_IP
Danube,
Amazon
VINAX-CPE
Street
cabinet
T1/E1
3G base station
Network
Central Office
T1/E1
2G base station
T1/E1 or
SHDSL
GEMINAX_MAX
VINAX
POTS/
ISDN/
DSL
T1/E1 or
SHDSL
3. Replacement
18-Sep-2007
Copyright © Infineon Technologies 2007. All rights reserved.
IP PBX
PBX
4. Migration
Slide 52
Next Generation Network Drives Growth in DSL
CO and CPE
Network replacement
profile per carrier
3 to 4 years
N
G
N
Convergence IMS
T
IP
V
IP
Vo
Digital
Telephone
Network
1990
18-Sep-2007
L
DS
la
er
v
O
y
2000
Copyright © Infineon Technologies 2007. All rights reserved.
2015
Slide 53
Table of Contents
„ Group Financials and Targets
„ Infineon‘s Focus Areas
† Energy Efficiency
† Communications
† Security
18-Sep-2007
Copyright © Infineon Technologies 2007. All rights reserved.
Slide 54
Chip Card ICs:
Spreading Out to New Segments
Major Chip Card Applications
Applications
Payment,
E/M-Commerce
Key Growth Drivers
Security
Mobility
Convenience
Internet
„ High security
„ Low-power consumption
„ Large memory
„ Low price
„ Multi applications
„ Virtual languages
„ Contactless
Identification
Transport
Banking
Mobile Communications
Prepaid Telephone
Past
18-Sep-2007
Current
Emerging
Copyright © Infineon Technologies 2007. All rights reserved.
Slide 55
Infineon –
Never stop thinking
UPDATE
Key Financials for Infineon excl. Qimonda
Q3 F05 Q4 F05 Q1 F06 Q2 F06 Q3 F06 Q4 F06 Q1 F07 Q2 F07 Q3 F07
Sales (EUR m)
947
964
996
1,065
995
1,058
958
978
1,011
-98
-10.3%
-81
-8.4%
1
0.1%
7
0.7%
-51
-5.1%
-174
-16.4%
-9
-0.9%
-28
-2.9%
13
1.2%
EBIT ex charges (EUR m)
EBIT margin ex charges
-27
-2.9%
-8
-0.8%
3
0.3%
11
1.0%
-22
-2.2%
-11
-1.0%
-9
-0.9%
1
0.1%
16
1.6%
D&A (EUR m)
D&A / Sales (%)
168
208
150
206
174
17.7% 21.6% 15.1% 19.3% 17.5%
172
162
152
16.3% 16.9% 15.5%
150
14.8%
EBIT (EUR m)
EBIT margin
CapEx (EUR m)
CapEx / Sales (%)
NM
107
NA 11.1%
49
4.9%
314
29.5%
158
15.9%
173
16.4%
105
11.0%
114
11.7%
110
10.9%
Gross Cash (EUR m)
1,374
1,264
1,426
1,427
1,585
1,481
870
890
Gross Debt (EUR m)
1,557
1,593
1,872
1,839
1,854
1,872
1,248
1,244
183
329
446
412
269
391
378
354
29,849 30,071 29,871
29,555
Net debt (EUR m)
Employees
18-Sep-2007
26,834 30,561
29,446
Copyright © Infineon Technologies 2007. All rights reserved.
Slide 57
Financial Calendar
„ Nov 14, 2007* Earnings Release FQ4 and FY 2007
„ Jan 28, 2008* Earnings Release FQ1 2008
„ Feb 14, 2008* Annual General Meeting
„ Apr 23, 2008* Earnings Release FQ2 2008
„ Jul 25, 2008* Earnings Release FQ3 2008
„ Dec 03, 2008* Earnings Release FQ4 and FY 2008
* = Preliminary Date
18-Sep-2007
Copyright © Infineon Technologies 2007. All rights reserved.
Slide 58