Infineon Technologies Ag · XETR:IFX
Infineon Technologies — CeBIT 2004
31 slides from Infineon Technologies's conference presentation, Mar 18, 2004
Slide 1: Investor Presentation
Investor Presentation CeBIT, Hannover - March 18th, 2004 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 k
Slide 2: Business Highlights
Business Highlights ! Fastest growing Top 10 semiconductor company* ! Significant market share gains ! Improved EBIT in Q1 FY04 ! Positive EBIT in all segments with the exception of Wireline ! Signed agreement to acquire ADMtek ! Preparing strategic options for fiber optics activities ! Significant
Slide 3: Product and Solution Highlights
Product and Solution Highlights ! Memory Products Introduction of 512Mbit flash chip based on TwinFlash technology ! Secure Mobile Solutions Introduction of 32-bit smart card controller with 400 KBytes flexible EEPROM. Expanded RFID solutions portfolio. ! Wireline Communications Won new design wins
Slide 4: Accelerated Growth in 2004
Accelerated Growth in 2004 Forecasts Forecasts 2004 2004 2005 2005 [USD bn] IC IC Insights Insights +27.1% +27.1% -- 5.7% 5.7% Dataquest Dataquest +20.1% +20.1% +17.7% +17.7% SIA SIA +19.4% +19.4% ++ 5.8% 5.8% WSTS WSTS +19.4% +19.4% +12.6% +12.6% In-Stat In-Stat +25.9% +25.9% +13.5% +13.5% 237 211
Slide 5: Strong Growth and Significant Market Share Gains
Strong Growth and Significant Market Share Gains Year-over-year Year-over-year revenue revenue growth growth (CY03/CY02) (CY03/CY02) 45% 47% 43% 33% 34% 18% Semiconductor IFX Automotive Wireline Secure Memory Market Total & Industrial Comm. Mobile Products Solutions Semiconductor market(1) Infineon
Slide 6: Infineon on the Way to the Top
Infineon on the Way to the Top Ranking Rank 9 months CY03 Target 1. Intel 2007 1 2. Samsung 3. Renesas 3 4. TI 6% 5. Toshiba 5 3.4 4.1 … 7 3.1 3.0 3.0 #6 #6 9 7. STM 2.8 # 8 #8 #8 8. NEC 11 9. Philips 2.3 # 10 10. Motorola 13 2.2 # 12 #x = Rank 15 2.0 # 13 = Market Share [%] # 15 … 1995 1996 1997 19
Slide 7: Worldwide Ranking in the DRAM Market
Worldwide Ranking in the DRAM Market Calender Year 2002 und Calender Year 2003 28.8% 1. Samsung 32.2% 16.4% 19.3% 2. Micron 18.1% 2003 3. 12.7% 16.4% 2002 4.0% 14.7% 4. Hynix 12.7% 4.6% 5. Nanya 5.5% 4.4% 6. Elpida 4.0% 4.2% 7. MVI 2.0% 8. Powerchip 2.7% 1.8% 1.9% 9. Winbond 3.1% Investor Presentati
Slide 8: Capitalizing on Growth Opportunities in APAC
Capitalizing on Growth Opportunities in APAC Sales by region Q1 FY03 Q1 FY04 Europe (1) NAFTA Europe (1) NAFTA 280 315 275 331 22% 20% 19% 17% 26% 33% 26% 37% Germany APAC & Germany 369 415 APAC & Others Others 477 602 Total: 1,441 EUR m Total: 1,623 EUR m (1) Excluding Germany [according to US GAAP
Slide 9: Improved Revenue Performance Year-over-Year
Improved Revenue Performance Year-over-Year Sales by segment [in EUR m] 1,756 1,623 1,441 1,484 1,471 765 643 39% 542 609 569 464 465 29% 405 369 381 106 112 119 122 107 7% 341 361 357 359 356 22% 47 33 45 46 52 3% Q1 FY03 Q2 FY03 Q3 FY03 Q4 FY03 Q1 FY04 Investor Presentation Memory Products Secure
Slide 10: Higher Margins and Lower Operating Expenses
Higher Margins and Lower Operating Expenses Gross Gross margin margin R&D R&D SG&A SG&A EBIT EBIT margin margin [% of total revenues] 31.9% 27.9% 18.4% 17.0% 11.9% 10.7% 4.3% (2.0%) Q1 FY03 Q1 FY04 Investor Presentation February 12, 2004 Copyright © Infineon Technologies 2003. All rights reserved. P
Slide 11: All Segments Contributed to EBIT Improvement
All Segments Contributed to EBIT Improvement IFX Secure Secure IFX Memory Memory Automotive Automotive Mobile Mobile Wireline Wireline Total Total Products Products & & Industrial Industrial Solutions Solutions Comm. Comm. [EBIT in EUR m] 70 57 48 44 31 14 (15) (29) (28) Investor Presentation (42) F
Slide 12: Operating and Free Cash Flow Significantly Improved
Operating and Free Cash Flow Significantly Improved 3 months ended Dec Dec 31, 31, 2002 2002 Sep Sep 30, 30, 2003 2003 Dec Dec 31, 31, 2003 2003 [EUR m] Operating Operating cash cash flow flow 44 442 442 320 320 Capex Capex (309) (309) (195) (195) (216) (216) Other Other investments investments (57)
Slide 13: Capex Increasing But Still Below Average
Capex Increasing But Still Below Average [EUR m] [in %] 3,000 60 Average 5 year capex/sales = 22% 2,500 50 2,000 40 1,500 30 1,000 20 500 10 0 0 FY99 FY00 FY01 FY02 FY03 FY04e Investor Presentation Capex Depreciation Capex/Sales (right hand scale) February 12, 2004 Copyright © Infineon Technologies
Slide 14: Infineon: Gaining Market Share in the Regions
Infineon: Gaining Market Share in the Regions IFX-NAFTA IFX-NAFTA ! 26% sales growth IFX-Asia IFX-Asia in first 9 months calendar year 2003 ! 48% sales growth ! Improved ranking from in first 9 months IFX-Europe IFX-Europe No. 7 to No. 5 calendar year 2003 ! No. 3 in DRAM with ! 27% sales growth ! F
Slide 15: Strong Presence in the Peoples Republic of China
Strong Presence in the Peoples Republic of China Beijing Sales Office/CC Lab Wuxi Logic/CC Plant Suzhou MP Plant Shanghai HQ/ CoC Offices Xi’an Development Production Center Hong Kong Shenzhen Investor Presentation February 12, 2004 Lab or DC Sales/Marketing/SMS Lab Sales and FAE Copyright © Infineo
Slide 16: Successful Partnerships and Acquisitions
Successful Partnerships and Acquisitions ! SMIC - Intensified cooperation ! CSVC - Joint Venture for Backend in China ! Inotera - Joint Venture with Nanya in Taiwan for DRAM production ! IBM and Chartered - Cooperation for 65-Nanometer logic chips ! SensoNor - Acquisition of tire pressure sensor mar
Slide 17: Infineon Grows Stronger Than the Market
Infineon Grows Stronger Than the Market Semiconductor Semiconductor revenue revenue Y-o-Y Y-o-Y growth growth rates rates Chip card market Chip card market Wireless market Wireless market IFX SMS revenues (right hand scale) IFX SMS [USD bn] [USD bn] 30 2.5 60% 25 2.0 40% 20 1.5 20% 15 1.0 0% 10 0.5
Slide 18: Continuously Increased Market Shares After 2001 Downturn
After the Market Downturn in 2001 Infineon Continuously Increased Market Shares Total Total handset handset market market GSM* GSM* // W-CDMA W-CDMA IFX RF IFX RF [units [units mn] IFX BB mn] IFX BB 600 600 510 500 407 423 500 401 400 400 337 272 300 300 248 249 200 200 100 100 0 0 CY00 CY01 CY02 CY
Slide 19: Platform Offering Track Record
Platform Offering Track Record From Turn Key Design to Volume Production Based Based on on IFX IFX Platform Platform ** ! Several phones (DBTEL, Galaxy, Konka, Tresor, etc.) in volume production in CY03 ! 19% of Infineon's basebands sold through platform business in CY03 Investor Presentation Februa
Slide 20: Growth Segment Identification: Design Win Overview
Growth Segment Identification: Design Win Overview National ID: Health care/social security: Finland 2000 Poland 2001 Estonia 2002 Slovania 2002 Hong Kong 2002 Spain 2002 Italy 2002 Taiwan 2002 Macao 2002 Austria 2003 Saudi Arabia 2002 Belgium 2003 Belgium 2003 Germany (2nd gen. pilot) 2003 Israel 2
Slide 21: ADMtek will Play Key Role as Broadband CPE Expert
ADMtek will Play Key Role as Broadband CPE Expert Solutions from the “Core to the Door” US Taiwan Munich Berlin Optical Networking Broadband BroadbandCPE CPE Carrier Access Fiber Optics Core OC-768/192 x n λ Metro OTM OXC OADM OADM Storage Class4/5 Switch DCS Datacenter FC/EoS DCS ATM ADM SW DSLAM C
Slide 22: Complementary Strengths Meeting Market Needs for Broadband CPE
Complementary Strengths Meeting Market Needs for Broadband CPE Market ADSL Technology # Legend Access Processor # =# WLAN # =# Voice # VDSL/SHDSL # Software Know How # CPE Reference Design # Application Engineering / Customer Access # Complementary competencies enable us to successfully compete Inve
Slide 23: Comment on VDSL Standards QAM and DMT
Comment on VDSL Standards QAM and DMT - Line Modulation Techniques ! QAM (Quadrature Amplitude Modulation) is also referred to as Single Carrier Modulation (SCM) – Used in over 90% of all VDSL system installed base. Over 4 million ports already in service worldwide. VDSL5000 – Infineon’s 5th Generat
Slide 24: Memory Products Strategy
Memory Products Strategy $ Be a strategic supplier to major OEMs on a worldwide basis $ Extend the Memory Products portfolio to offer "One-stop-shopping" to customers with various memory needs: $ Focus the product portfolio on the growth segments infrastructure and mobile applications $ Enter and ga
Slide 25: Additional Capacities Proceeding on Schedule
Additional Capacities Proceeding on Schedule Frontend 300mm: JV Inotera, Taiwan Backend: Suzhou, China ! Joint Venture with Nanya ! Joint Venture with CSVC (China- ! Equipment move-in started Dec 2003 Singapur Suzhou Industrial Parc ! Start Production Q2 2004 Venture Co., LTD, Suzhou ! Final capacit
Slide 26: Top DRAM Player in 2003
Top 3 DRAM Player in 2003 - Optimize Growth through Foundries and Cooperations 28.8% 1. Samsung 32.2% 19.3% 2. Micron 18.1% 2003 3. 16.4% 2002 based on Trench technology 12.7% 4. Hynix 14.7% 12.7% 4.6% 5. Nanya 5.5% Top 10 in 2002: 94% Market share 4.4% therein 25.2% Trench based 6. Elpida 4.0% Top
Slide 27: DRAM: Focus the Product Portfolio on Growth Segments
DRAM: Focus the Product Portfolio on the growth Segments Infrastructure and Mobile Applications CAGR of DRAM Bit Demand 2003-2008 100% Infocom $ Mobile Phone 80% $ Smart Phone $ PDA Infrastructure CAGR total DRAM $ Web pad $ Server market 03-08 $ Networking 60% NAS, SAN Others 40% Entertainment Comp
Slide 28: Leading Fully Loaded Cost Position
Leading Fully Loaded Cost Position 8,00 FLC in USD Fully Loaded Cost 7,00 FLC in EUR 6,00 5,00 4,00 3,00 Q4 01/02 Q1 02/03 Q2 02/03 Q3 02/03 Q4 02/03 Q1 03/04 0% -10% FLC Reduction -20% -30% -40% QOQ EUR -50% YOY EUR -60% ! Leading position in 300mm and smallest die sizes translate into strong Fully
Slide 29: NROM and Floating-Gate Technology
NROM and Floating-Gate Technology Floating NROM Gate TwinFlash® by IFX NAND NOR EEPROM Multi-bit Cell multi-level Cells multi bits per cell 2 bit-per-cell 4 voltage levels 2 spatial separated bits 3 bit-per-cell 8 voltage levels Investor Presentation February 12, 2004 4 bit-per-cell 16 voltage level
Slide 30: Product Portfolio
Enter and gain leadership in non-volatile Memory Technologies NOR/NAND Flash Memory Forecast ($B) Flash 12 Source: Dataquest (Q3/2003) Customized Product Portfolio (Code, Data, Logic) 10 CAGR 11.6 Flash for 26% Code (Intel compatibel) Market [Bill. $] 8 CAGR Flash MCP 6 5.7 for Mass 5.8 33% Storage
Slide 31: Outlook Fiscal Year 2004
Outlook Fiscal Year 2004 ! Semiconductor market Positive signs for market recovery; we expect stable growth for all segments in fiscal year 2004. Objective is to again outgrow the market and improve profitability relative to industry benchmarks ! Wireline Communications Solid growth expected in FY 2