Infineon Technologies Ag · XETR:IFX
Infineon Technologies — Merrill Lynch 6th Asia Pacific Technology Conference (March 2003)
38 slides from Infineon Technologies's conference presentation, Mar 20, 2003
Slide 1: Infineon
December 12th, 2001 Merrill Lynch – 6th Asia Pacific Technology Conference Infineon Taipei, March 20, 2003 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 certai
Slide 2: Market Development and Forecasts
Market Development and Forecasts Source: WSTS (in US $ bn) Forecasts Forecasts 2003 2003 2004 2004 IC IC Insights Insights ++ 15.0% 15.0% ++ 26.0% 26.0% Dataquest Dataquest ++ 12.1% 12.1% ++ 26.2% 26.2% SIA SIA ++ 19.8% 19.8% ++ 21.7% 21.7% WSTS WSTS ++ 16.6% 16.6% ++ 19.2% 19.2% In-Stat In-Stat ++
Slide 3: Improved Top Ten Ranking 2002 - From 8th to 6th Place
Improved Top Ten Ranking 2002 - From 8th to 6th Place Revenues 2001 in bn US $ 2002 0 2 4 6 8 10 12 ... 24 1. Intel 2. Samsung 3. ST Micro 4. TI Infineon Infineon 5. Toshiba 2002: 2002: No. No. 66 6. Infineon 2001: 2001: No. No. 88 7. NEC 1998: 1998: No. No. 10 10 8. Motorola 1995: 1995: No. No. 15
Slide 4: Infineon: Market-oriented Business Structure
Infineon: Market-oriented Business Structure Business Groups Applications Wireline Broadband and Carrier Access, high speed line Communication cards for metro and long-haul optical networks Customers Secure Secure mobile applications and systems: communication, payment, identification, Mobile comput
Slide 5: First Quarter Highlights Fiscal Year 2003
First Quarter Highlights Fiscal Year 2003 Revenues increase of 10 percent sequentially to Euro 1.52 billion - mainly driven by increased demand for memory products and mobile communications Another record sales quarter of the Automotive & Industrial segment Strong improvement of earnings performance
Slide 6: Quarterly development of Infineon's revenue and EBIT
Quarterly development of Infineon’s revenue and EBIT (Million Euro) 2,000 1404 1523 1385 1384 1,500 1034 1,000 500 0 -107 -31 -178 - 500 -292 -564 - 1,000 Dec Mar Jun Sep Dec 2001 2002 Merrill Ly nch March 20, 2003 Page 6 Revenue EBIT Copyright © Infineon Tec hnologies 2003 All rights reser ved
Slide 7: Improved Revenue Performance
Improved Revenue Performance Revenues Revenues (according to US GAAP Q1 2002 Q2 2002 Q3 2002 Q4 2003 Q1 2003 in EUR Mio.) Wireline 83 96 102 105 106 Communications Secure Mobile 286 295 327 371 412 Solutions Automotive & 273 299 308 321 334 Industrial Memory Products 287 588 549 437 542 Merrill Ly n
Slide 8: Improved EBIT Performance
Improved EBIT Performance EBIT EBIT (according to US GAAP Q1 2002 Q2 2002 Q3 2002 Q4 2002 Q1 2003 in EUR Mio.) Wireline (85) (66) (49) (36)* (37)* Communications Secure Mobile (60) (37) 3 17* 11* Solutions Automotive & 20 23 30 38 44 Industrial Memory Products (375) (33) (21) (204) 29 * Secure Mobil
Slide 9: IMPACT Focus: Fastest Possible Cash Savings
IMPACT Focus: Fastest Possible Cash Savings IMPACT² Focus: Structural Improvement & Cost Reduction IMPACT IMPACT2 Rapid reaction to the Improved competitiveness towards strongest market downturn best practice and benchmarks About 2.8bn Euro cash- More efficient structures through: effective cost red
Slide 10: Annual Sales by Segment
Annual Sales by Segment Sales nach Umsatz by Segments Segmenten FY 2001 FY 2002 Other(b) € 616 Automotive Other(b) € 481 Automotive & Industrial & Industrial 11% € 1,153 9% € 1,201 20% 23% Memory 28% Memory 36% Products 41% Products 32% € 1,588 € 1,844 Communications(a) Communications(a) € 2,314 € 1
Slide 11: Annual Sales by Region
Annual Sales by Region Sales by Regions FY 2001 FY 2002 Others € 95 Others € 89 APAC & 2% Germany APAC & 2% Germany Japan € 1,745 Japan 23% 31% 29% 26% € 1,372 € 1,309 € 1,512 22% 20% 22% 23% NAFTA Europe NAFTA Europe € 1,262 (excl. Germany) (excl. Germany) € 1,211 € 1,260 € 1,023 Total: € 5,671m To
Slide 12: Sales by Segments, Comparison Q4 FY 2002 vs. Q1 FY 2003
Sales by Segments, Comparison Q4 FY 2002 vs. Q1 FY 2003 Sales Umsatz by by Segments Salesnach Segmenten Segments Q4 FY 2002 Q1 FY 2003 Other (b) € 151 Other (b) € 129 Communications (a) Communications (a) € 475 € 518 11% 8% Memory 34% Memory 34% Products Products € 437 32% 36% € 542 23% 22% Automoti
Slide 13: Sales by Region, Comparison Q4 FY 2002 vs. Q1 FY 2003
Sales by Region, Comparison Q4 FY 2002 vs. Q1 FY 2003 Sales Sales by by Regions Regions Q4 FY 2002 Q1 FY 2003 Others € 24 Others € 6 APAC & 1% Germany 0,4% APAC & Germany Japan € 371 Japan € 398 € 420 30% 27% 32% 26% € 484 20% 20% 22% 22% NAFTA Europe NAFTA Europe € 308 (excluding Germany) € 331 (ex
Slide 14: Infineon - Corporate Strategy Agenda 5-to-1
Infineon - Corporate Strategy Agenda 5-to-1 Strategic Strategic Objectives Objectives Within the framework of the Agenda 5-to-1, Infineon intends to: 5 focus within the NEXT 5 YEARS 4 on becoming a TOP 4 global semiconductor player 3 by achieving at least a TOP 3 position in each segment served 2 wi
Slide 15: Objective 3 - Achieve Top 3 Position in all Segments
Objective 3 - Achieve Top 3 Position in all Segments Among Among TopTop 33 in in wired wired and and mobile mobile communications communications -- e.g. e.g. wired wired communication up from 5% 5% in in 2000 to 7% 7% in in 2001 2001 (Source: (Source: iSuppli) iSuppli) No. No. 11 for for security se
Slide 16: Objective 3 - Focus on Growth Markets
Objective 3 - Focus on Growth Markets Focus Focus on on growth growth markets markets China, China, Japan, Japan, and and US US Maintain Maintain aa strong strong foothold foothold in in Europe Europe and and Asia/Pacific Asia/Pacific China China -- Achieve Achieve aa Top Top 44 position position wi
Slide 17: Objective 3 - Focus on Growth Markets
Objective 3 - Focus on Growth Markets USA USA -- Expansion Expansion of of logic logic business business Very attractive market due to its size and strong expected growth over the next 4 years Improves market position by: - expanding logic business, especially automotive and communications - strengt
Slide 18: Objective 2 - Refocusing Investments
Objective 2 - Refocusing Investments: Gaining Resources for Expansion of the Solution Business CAPEX focused on continued upgrading of internal manufacturing and R&D Use financial flexibility to further build-up Infineon's solution business; e.g Expanding software competence, e.g. Bangalore design c
Slide 19: Objective 2 - Strengthened Cost Leadership + Flexibility @ Lowest Costs
Objective 2 - Refocusing Investments: Strengthened Cost Leadership + Flexibility @ Lowest Costs Chip size shrinks every 12-15 months 1998 2001 2005 30% cut in production costs 0.24 µm 0.14 µm 0.07 µm Successful production on 300 mm wafers since 2001 30% cost advantage over production on 200 mm wafer
Slide 20: Objective 1 - Infineon's Target Applications
Objective 1 - Championing the Solutions Business: Infineon's Target Applications Secure Mobile Applications xDSL Communications Fiber Optics Payment Fiber-to-the-home Computing Optical Networking Entertainment Wide/Local/Personal LAN/WAN/MAN Area Wireless, GPS Infineon's Core Competencies Broadband
Slide 21: Objective 1 - Expanding Global Partnerships-Networks
Objective 1 - Championing the Solutions Business: Expanding Global Partnerships-Networks* Applications Applications Technology Technology & & Chip Chip Design Design Production Production && Design Design & & Systems Systems Development Development (Cores (Cores & & Modules) Modules) Flexibility Fle
Slide 22: Secure Mobile Solutions: Providing a Complete Product Portfolio
Secure Mobile Solutions: Providing a Complete Product Portfolio Wide Wide Area Area Local Local Area Area Wireless Wireless Customized Customized Security Security Discretes Discretes Wireless Wireless Wireless Wireless Infrastructure Infrastructure Solutions Solutions Identification GSM DECT GSM Mo
Slide 23: Evolution of Security Solutions
Evolution of Security Solutions Applications SIM SIM cards cards Trusted Trusted Computing Computing Debit Debit cards cards Content Content Item Item Management Management Protection Protection Pay-TV Pay-TV Debit Debit // Credit Credit cards cards Insurance Insurance Prepaid Prepaid phone phone ca
Slide 24: Broad Range of Services to Enable Mass Customized Solutions
Broad Range of Services to Enable Mass Customized Solutions Reference Customized Design Customization Services Solution HW HW Customization Customization Keypad Keypad Poly Ringer Connectors Connectors Camera Battery Battery etc. Display Display SW SW Customization Customization APOXI APOXI MMI MMI
Slide 25: Strong Record for System Solution Expertise
Strong Record for System Solution Expertise From turn key design to volume production 1999 foundation of DWD and acquisition of Comneon 1st total system demonstration of GSM during Cannes 2000 1st total system integration on GPRS during Cannes 2001 Start of Volume production in 2001 based on our ref
Slide 26: Infineon Wireline Communications
Infineon Wireline Communications Supplying Semiconductors and Optical Modules to the "Net" Long-term DWDM/SDH/SONET WAN/Backbone growth MAN/Metro OPTICAL NETWORKING CWDM/DWDM ATM/SDH/SONET/GB-Ethernet Mid-term growth SAN/LAN Fiber Channel FIBER OPTICS Ethernet Fiber Access Short-term growth ADSL, VD
Slide 27: Key Design Wins Position Access for Market Leadership
Key Design Wins Position Access for Market Leadership Over 70 design wins for Ethernet-over-VDSL at major vendors in Asia (e.g. Huawei, ZyXEL, Sumitomo Electric, ...) grant market dominance in Asia Strong entrance into ADSL market with integrated voice & data solution chosen by key ADSL vendors espe
Slide 28: Chipsets for Automotive & Industrial Applications & Solutions
Chipsets for Automotive & Industrial Applications & Solutions Defining Automotive Intelligence Applications Applications Products Products Powertrain Powertrain Sensors Sensors Safety Safety Management Management Microcontrollers Microcontrollers Comfort Comfort Management Management Power Power Dev
Slide 29: Applications for Automotive
Applications for Automotive window lifter sliding roof wiper seat control gearing clutch brakes engine management mirror central locking 1/3 light control Back to air condition Overview Merrill Ly nch March 20, 2003 Page 29 Copyright © Infineon Tec hnologies 2003 All rights reser ved
Slide 30: Infineon Automotive Ranks No. 2 Worldwide
Infineon Automotive Ranks No. 2 Worldwide by Continuously Outperforming the Market Infineon Infineon Automotive Automotive 2001 2001 Continuous Continuous Outperformance Outperformance No. No. 22 worldwide worldwide No.1 No.1 Europe Europe Motorola Infineon Indexed Automotiv e 12.9% Sales 350 Others
Slide 31: Increasing Importance of Semiconductors in the Vehicle
Increasing Importance in the Vehicle as Semiconductor Content Grows from US $ 200 (in 2000) to US $ 300 (in 2010) World World Light Light Vehicle Vehicle Production Production Automotive Automotive Bill Bill of of Materials Materials 75,000 70,059 100% 3% 4% 8% 14% Pneumatics 56,778 9,962 Hydraulics
Slide 32: Worldwide DRAM Revenue Ranking CY 2001 vs. 2002
Worldwide DRAM Revenue Ranking CY 2001 vs. 2002 1. Samsung 32% 31% 2. Micron 17% 22% 3. 12% 11% 2002 4. Hynix 11% 2001 19% 5. Elpida 6% 5% 6. Nanya 6% 5% Source: ICInsights, January 2003 Merrill Ly nch March 20, 2003 Page 32 Copyright © Infineon Tec hnologies 2003 All rights reser ved
Slide 33: Cost Crossover 300mm and 200mm
Cost Crossover 300mm and 200mm 30 Fully Loaded Costs Volume ramp 300mm: 0m per Bit-equivalent currently 19,000 WSPM m Yield comparable to Co 200mm s ts Golden wafer > 90% er ov 200mm Costs Yield s os Up to 30% productivity cr advantage over 200mm st co Q4 00/01 Q1 01/02 Q2 01/02 Q3 01/02 Q4 01/02 Q1
Slide 34: Increase Market Share and Focus on Growth Segments
Increase Market Share and Focus on Growth Segments Infrastructure and Infocom CAGR of DR AM Bit Demand 2002-2007 120% CAGR total Computing Infocom DRAM market Infocom 02-07 Desktop PC Mobile Phone 100% Notebook PC Smart Phone 80% Workstation PDA Entertainment Infrastructure Graphics Web pad 60% Infr
Slide 35: Joint Venture Infineon Technologies Flash GmbH & Co. KG
Joint Venture Infineon Technologies Flash GmbH & Co. KG Significant expansion of Infineon’s flash memory business through Joint Venture with Saifun Semiconductors with headquarters and production located in Dresden Infineon holding 70 percent of the JV, focusing on development and production of data
Slide 36: Comprehensive Flash Product Portfolio
Comprehensive Flash Product Portfolio: From Leading Technologies to Complete System Solutions Flash for Customized Flash Small Form Factor Cards - Wireless Building Blocks - MultiMediaCard / SD- SD-Cards - Secure System Solution - Compact Flash Cards - Logic and Flash on a Chip - Memory Stick... Pro
Slide 37: Infineon - Partner of the Worldwide Electronics Industry
Infineon - Partner of the Worldwide Electronics Industry Main Customers Alcatel Huawei Nokia Siemens Wireline Cisco Lucent Nortel Communications Ericsson Marconi NEC DBTel Matsushita Sagem Siemens Secure Mobile Ericsson Nokia Samsung Sony Solutions Gemplus Oberthur Schlumberger Vtech Giesecke & Card
Slide 38: Never stop thinking
Merrill Ly nch "Never stop thinking" March 20, 2003 Page 38 Copyright © Infineon Tec hnologies 2003 All rights reser ved
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