Infineon Technologies Ag · XETR:IFX

Infineon Technologies — Non-Deal Roadshow (November 2005)

40 slides from Infineon Technologies's roadshow presentation, Nov 17, 2005

  1. Slide 1: Fiscal Year-end Roadshow

    Fiscal Year-end Roadshow November / December 2005 Dr. Wolfgang Ziebart President and CEO Peter J. Fischl Executive Vice President and CFO Roadshow FY 2005 Copyright © Infineon Technologies 2005. All rights reserved. Page 1

  2. Slide 2: Disclaimer

    Disclaimer Please note that while you are reviewing this information, this presentation was created as of the date listed, and reflected management views as of that date. This presentation contains certain forward-looking statements that are subject to known and unknown risks and uncertainties that

  3. Slide 3: Infineon FY05 roadshow: Contents

    Infineon FY05 roadshow: Contents Financials Financials AIM AIM Review Review COM COM Review Review MP MP Review Review Outlook Outlook Memory Memory Carve Carve Out, Out, Plan Plan for for IPO IPO IFX IFX Group: Group: Differentiated Differentiated Manufacturing Manufacturing Roadshow FY 2005 Copyri

  4. Slide 4: Infineon FY05 Roadshow: Contents

    Infineon FY05 Roadshow: Contents Financials Financials AIM AIM Review Review COM COM Review Review MP MP Review Review Outlook Outlook Memory Memory Carve Carve Out, Out, Plan Plan for for IPO IPO IFX IFX Group: Group: Differentiated Differentiated Manufacturing Manufacturing Roadshow FY 2005 Copyri

  5. Slide 5: Results for Q4 vs. Q3 of FY05

    Results for Q4 vs. Q3 of FY05 [EUR m] Q3 Q3 FY05 FY05 Q4 Q4 FY05 FY05 FY FY 2005 2005 Net sales 1,606 1,731 6,759 Gross margin 16% 26% 27% R&D expenses 320 290 1293 in % of sales 20% 17% 17% SG&A expenses 157 172 655 in % of sales 10% 10% 10% EBIT (234) (43) (183) EBIT excluding one-off’s (152) 21 (

  6. Slide 6: Maintaining a solid financial position

    Maintaining a solid financial position [EUR m] FY05 FY05 Sept. Sept. 30, 30, 2005 2005 [EUR m] Operating Gross Net Total cash flow 1,039 cash cash debt 2,006 341 1,665 Capex (1,368) Other 633 investments (1) 48 690 Free cash flow (281) 243 99 4.25% convertible due Feb. 2007 5.00% convertible due Jun

  7. Slide 7: Infineon FY05 Roadshow: Contents

    Infineon FY05 Roadshow: Contents Financials Financials AIM AIM Review Review COM COM Review Review MP MP Review Review Outlook Outlook Memory Memory Carve Carve Out, Out, Plan Plan for for IPO IPO IFX IFX Group: Group: Differentiated Differentiated Manufacturing Manufacturing Roadshow FY 2005 Copyri

  8. Slide 8: Business Group Automotive, Industrial & Multimarket FQ4 Update

    Business Group Automotive, Industrial & Multimarket FQ4 Update Revenue Revenue share share Revenues Revenues and and EBIT EBIT margin margin Q4 Q4 FY05 FY05 [EUR m] 708 669 631 634 606 625 626 557 36% 8% 11% 13% 8% 7% 6% 4% 4% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY04 FY05 ! Stable revenues driven by strong dema

  9. Slide 9: AIM fields of activities

    AIM fields of activities Power Generation & Distribution FY05 revenue: Powertrain Power Supplies Automation, Ind. Motor Control EUR 2.5bn Body & Convenience Traction Safety Infotainment Automotive Industry Computing Communications Consumer PC motherboards Power supplies for TVs, DVD players etc SIM

  10. Slide 10: In Automotive, Infineon leads the long-range route

    In Automotive, Infineon leads the long-range route Outstanding Outstanding performance: performance: No. No. 11 in in Europe, Europe, No. No. 22 worldwide, worldwide, No. No. 33 in in U.S. U.S. " Strong development in Europe IFX products Key applications ! Sensors ! Powertrain " Improved in NAFTA &

  11. Slide 11: Infineon strengthened No. 1 position in Power and improved to No. 4 in industrial

    Infineon strengthened No. 1 position in Power and improved to No. 4 in industrial applications Industrial Industrial Semiconductor Semiconductor Market Market IFX IFX Industrial Industrial Products Products 2004 2003 Rank 2004 Rank Company Name ! Power semiconductors Revenue 1 1 Renesas Technology 1

  12. Slide 12: Chip Card: returning to profits

    Chip Card: returning to profits MicroSlim MicroSlim Restructuring Restructuring ! Inline ! Inline pads pads vs vs outline outline pads pads ! 1-transistor-per-bit ! 1-transistor-per-bit ! Cost ! Cost cutting cutting ! Implementation ! Implementation along along with with ! R&D ! R&D budget budget re

  13. Slide 13: Design-win for Microsoft Xbox 360

    Design-win for Microsoft Xbox 360 Infineon Infineon products products developed developed for for Xbox Xbox 360 360 ! Wireless game-pad controller ! Advanced security chip ! Removable solid-state memory unit Roadshow FY 2005 Copyright © Infineon Technologies 2005. All rights reserved. Page 13

  14. Slide 14: Discrete Semis: market focus & core competencies

    Discrete Semis: market focus & core competencies Consumer Consumer and and Automotive Automotive and and Communication Communication Computer Computer Peripherals Peripherals Industry Industry Mobile Phone, GPS, Tuner, LNB, DSC, General Purpose WLAN, Cordless DVC, Computer, … Infotainment RF Bipolar

  15. Slide 15: Infineon FY05 Roadshow: Contents

    Infineon FY05 Roadshow: Contents Financials Financials AIM AIM Review Review COM COM Review Review MP MP Review Review Outlook Outlook Memory Memory Carve Carve Out, Out, Plan Plan for for IPO IPO IFX IFX Group: Group: Differentiated Differentiated Manufacturing Manufacturing Roadshow FY 2005 Copyri

  16. Slide 16: Business Group Communication FQ4 Update

    Business Group Communication FQ4 Update Revenue Revenue share share Revenues Revenues and and EBIT EBIT margin margin Q4 Q4 FY05 FY05 [EUR m] 414 419 466 414 390 332 331 314 3% 1% -10% 3% 4% 0% -16% (1) 19% -5% -30% -16% -14% -28% -43% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY04 FY05 ! COM revenue increased slight

  17. Slide 17: COM fields of activities

    COM fields of activities FY05 revenue: UMTS EUR 1.4bn EDGE Smart phones GSM/GPRS Multimedia CDMA Feature Bluetooth Mobile RF A-GPS Entry Phone Solutions WLAN ULC Platforms DECT WDCT DVB-T Broadband DVB-H T-DMB CO T/E CPE ATM/IP VoIP VoIP xDSL xDSL Copper-wire ISDN ISDN CODEC/SLIC CODEC/SLIC Roadshow

  18. Slide 18: Early innovation translates into design-wins

    Early innovation translates into design-wins IFX IFX market market share share and and ranking ranking Highlights Highlights in in DSL DSL IC’s IC’s ! Several major OEM's decided to 11% start VDSL2 designs based on our chipset 9% 8% ! Production for a major VDSL2 project in 1H CY06 already started #

  19. Slide 19: Securing a solid No. 1 position in RF transceivers

    Securing a solid No. 1 position in RF transceivers IFX IFX market market share share and and ranking ranking Highlights Highlights in in RF RF transceivers transceivers ! Successful ramp-up of new RF 18% transceiver product for a major OEM 16% 14% ! 3G CMOS transceiver: 4 dual-mode mobile phone plat

  20. Slide 20: Competitive platform offering, strong execution lead to several design-wins

    Competitive platform offering, strong execution lead to several design-wins IFX IFX market market share share in in baseband baseband Design-wins Design-wins Ramp- Customer Platform up 10% Target ≥ 10% GSM/GPRS BenQ feature phones 2006 EDGE BenQ Multimedia 2006 5.5% GSM/GPRS Since Q3 Panasonic featu

  21. Slide 21: Infineon FY05 Roadshow: Contents

    Infineon FY05 Roadshow: Contents Financials Financials AIM AIM Review Review COM COM Review Review MP MP Review Review Outlook Outlook Memory Memory Carve Carve Out, Out, Plan Plan for for IPO IPO IFX IFX Group: Group: Differentiated Differentiated Manufacturing Manufacturing Roadshow FY 2005 Copyri

  22. Slide 22: Business Group Memory Products FQ4 Update

    Business Group Memory Products FQ4 Update Revenue Revenue share share Revenues Revenues and and EBIT EBIT margin margin Q4 Q4 FY05 FY05 [EUR m] 811 807 766 768 643 665 633 659 17% 21% 26% 9% 2% 3% 4% (1) 18% 44% -6% -19% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY04 FY05 ! Production growth in line with up mid teens

  23. Slide 23: Strong roadmap, on track for 90nm, targeting faster 70nm

    Strong roadmap, on track for 90nm, targeting faster 70nm Minimum Feature Size (nm) 200 150 0.17µm 0.14µm 100 110nm 90nm 50 70nm 60nm 25 40nm Litho KrF (DUV 248nm) ArF (193nm) ArF immersion Density 512M 1G 2G 4G Interface DDR DDR2 DDR3 DDR4 2000 2002 2004 2006 2008 Roadshow FY 2005 Copyright © Infine

  24. Slide 24: Continued mix and ASP optimization

    Continued mix and ASP optimization 30% 25% 20% Bit-Marketshare 15% 10% 5% 0% F1Q 04 F2Q 04 F3Q 04 F4Q 04 F1Q 05 F2Q 05 F3Q 05 F4Q 05 F1Q 06 F2Q 06 F3Q 06 F4Q 06 IFX Graphics DRAM share Roadshow FY 2005 Source: Infineon, October 2005 Copyright © Infineon Technologies 2005. All rights reserved. Page 2

  25. Slide 25: Infineon FY05 Roadshow: Contents

    Infineon FY05 Roadshow: Contents Financials Financials AIM AIM Review Review COM COM Review Review MP MP Review Review Outlook Outlook Memory Memory Carve Carve Out, Out, Plan Plan for for IPO IPO IFX IFX Group: Group: Differentiated Differentiated Manufacturing Manufacturing Roadshow FY 2005 Copyri

  26. Slide 26: Infineon Business Group Q1 FY06 Outlook as of Nov 18th

    Infineon Business Group Q1 FY06 Outlook as of Nov 18th ! Estimating revenues to increase slightly with stable EBIT margin AIM AIM compared to Q4 FY05. ! Awaiting slight sales growth in auto, flat sales in industrial ICs. Ongoing price pressure in chip card ICs; continuing productivity measures. ! Pl

  27. Slide 27: Infineon Group's FQ1 and FY06 Outlook as of Nov 18

    Infineon Group's FQ1 and FY06 Outlook as of Nov 18 Q1 FY06 sales: slight increase expected sequentially Q1 FY06 one-off charges: no significant amounts expected FY06 Capex: expected range is EUR 1.2-1.4 bn FY06 Depreciation: expected at about EUR 1.3 bn Roadshow FY 2005 Copyright © Infineon Technolo

  28. Slide 28: Infineon FY05 Roadshow: Contents

    Infineon FY05 Roadshow: Contents Financials Financials AIM AIM Review Review COM COM Review Review MP MP Review Review Outlook Outlook Memory Memory Carve Carve Out, Out, Plan Plan for for IPO IPO IFX IFX Group: Group: Differentiated Differentiated Manufacturing Manufacturing Roadshow FY 2005 Copyri

  29. Slide 29: We Used to Have Synergies in Capacity Re-use

    We Used to Have Synergies in Capacity Re-use Traditional Traditional Cascading Cascading Model Model I Invest Invest into into Leading Leading Edge Edge memory memory II Conversion Conversion to to Advanced Advanced CMOS CMOS Logic Logic III Re-Use Re-Use for for Automotive Automotive and and Power

  30. Slide 30: In future, technology changes will lead to declining synergies

    In future, technology changes will lead to declining synergies Share Share of of 300mm-based 300mm-based Minimum Minimum feature feature size size DRAM DRAM capacities capacities by by technology technology [µm] 5,0 100% Bipolar- 3,0 Analog 80% 2,0 1,5 IGBT 1,0 60% DMOS Analog 0,65 0,5 BiCMOS 40% 0,

  31. Slide 31: Reduced synergies and benefits to be realized lead to Carve-out decision

    Reduced synergies and benefits to be realized lead to Carve-out decision Additional Additional benefits benefits from from carve-out carve-out & & IPO IPO ! ! Aside Aside from from declining declining synergies, synergies, we we see see significant significant benefits benefits -- Enhanced Enhanced

  32. Slide 32: Infineon FY05 Roadshow: Contents

    Infineon FY05 Roadshow: Contents Financials Financials AIM AIM Review Review COM COM Review Review MP MP Review Review Outlook Outlook Memory Memory Carve Carve Out, Out, Plan Plan for for IPO IPO IFX IFX Group: Group: Differentiated Differentiated Manufacturing Manufacturing Roadshow FY 2005 Copyri

  33. Slide 33: Core strengths in Logic

    Core strengths in Logic Application Application Expertise Expertise Areas Areas of of Application Application Expertise Expertise COM COM Strength Strength AIM AIM RF RF Car Car Electronics Electronics Solutions Solutions Analog/ Industrial Industrial Mixed-Signal Electronics Electronics Mobile Mobi

  34. Slide 34: Roadmap: Shrink speeds diverging more and more

    Roadmap: Shrink speeds diverging more and more 5,0 3,0 Bipolar- Minimum Feature Size [µm] 2,0 Analog (half pitch dimensions) 1,5 1,0 IGBT 0,65 DMOS 0,5 Analog 0,35 BiCMOS 0,25 5V CMOS 0,18 RF BIPOLAR 0,13 RF BiCMOS 0,10 0,07 0,035 CMOS logic DRAM Flash 1995 2000 2005 2010 2015 Roadshow FY 2005 Sourc

  35. Slide 35: Differentiated Manufacturing Strategy

    Differentiated Manufacturing Strategy Memory Memory Moore's Moore's law law fully fully valid, valid, capital capital intensity intensity remains remains high. high. # Partnership # Partnership model model to to continue continue to to optimize optimize CapEx CapEx and and R&D. R&D. Advanced Advance

  36. Slide 36: New Automotive and Industrial power fab in Malaysia on track for 2006 ramp

    New Automotive and Industrial power fab in Malaysia on track for 2006 ramp First First dedicated dedicated Logic Logic fab fab right right from from the the start! start! RFE: March 2006 Nodes: 0.22µ to 1.5µ Capacity: ~100k WSPM on 8" by 2009 Products: Power ICs for automotive and industrial applica

  37. Slide 37: Never stop thinking.

    Never stop thinking. Roadshow FY 2005 Copyright © Infineon Technologies 2005. All rights reserved. Page 37

  38. Slide 38: Results for FY05 vs. FY04

    Results for FY05 vs. FY04 [EUR m] FY04 FY04 FY05 FY05 Change Change Net sales 7,195 6,759 (436) Growth (6%) Gross margin 35% 27% R&D expenses 1,219 1,293 74 in % of sales 17% 17% SG&A expenses 718 655 -63 in % of sales 10% 10% EBIT 256 (183) (439) EBIT excluding one-off’s 588 (79) (667) in % of sale

  39. Slide 39: One-off's in FY05

    One-off‘s in FY05 [EUR m] FY05 FY05 ProMOS ProMOS license license income income 118 118 Restructuring Restructuring charges charges (78) (78) Impairment Impairment charges charges (134) (134) Other Other (10) (10) TOTAL TOTAL (104) (104) Roadshow FY 2005 Copyright © Infineon Technologies 2005. All r

  40. Slide 40: Infineon Financials FQ4 Update

    Infineon Financials FQ4 Update Revenue Revenue share share Revenues Revenues and and EBIT EBIT margin margin Q4 Q4 FY05 FY05 [EUR m] 1.908 1.993 1.816 1.623 1.671 1.731 1.606 1.606 AIM COM MP 10% 12% 12% -3% 5% 4% -9% 1% (1) 5% 4% 4% 0% 6% -7% -15% -2% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY04 FY05 (1) Excl. acq

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