– Q2 FY 2024: Income €3.632 billion, Phase End result €707 million, Phase End result Margin 19.5 p.c
– Outlook for FY 2024: Primarily based on an assumed trade price of US$1.10 to the euro, Infineon now expects to generate income of round €15.1 billion plus or minus €400 million (beforehand €16 billion plus or minus €500 million), with a Phase End result Margin of round 20 p.c (beforehand within the low to mid-twenties share vary) on the mid-point of the guided income vary. Adjusted gross margin might be within the low-forties share vary (beforehand within the low to mid-forties share vary). Investments are deliberate at round €2.8 (beforehand round 2.9 billion). Adjusted Free Money Circulation of about €1.6 billion (beforehand €1.8 billion) and reported Free Money Circulation of about €0 million (beforehand about €200 million) at the moment are anticipated
– Outlook for Q3 FY 2024: Primarily based on an assumed trade price of US$1.10 to the euro, income of round €3.8 billion anticipated. On this foundation, the Phase End result Margin is forecast to be within the high-teens share vary
Infineon Applied sciences AG is reporting outcomes for the second quarter of the 2024 fiscal yr (interval ended 31 March 2024).
„Within the prevailing troublesome market setting, Infineon delivered a strong second quarter”, says Jochen Hanebeck, CEO of Infineon. “Many finish markets have remained weak attributable to financial circumstances, whereas clients and distributors have continued to scale back semiconductor stock ranges. Weak demand for shopper purposes persists. There has additionally been a noticeable deceleration in progress within the automotive sector. We’re due to this fact taking a cautious strategy to the outlook for the remainder of the fiscal yr and are reducing our forecast. Within the medium to long run, decarbonization and digitalization will proceed to be sturdy structural drivers of our worthwhile progress. So as to understand the total potential of our Firm, we’ll additional strengthen our competitiveness. To this finish, we’re launching the company-wide “Step Up” program. We’re aiming to realize structural enhancements in our Phase End result within the excessive triple-digit million euro vary per yr.”
Group efficiency within the second quarter of the 2024 fiscal yr
Within the second quarter of the 2024 fiscal yr, Infineon generated Group income of €3,632 million. This was 2 p.c down on income within the prior quarter of €3,702 million. Within the Automotive (ATV) phase, income remained secure in contrast with the prior quarter, whereas within the Inexperienced Industrial Energy (GIP) and Energy & Sensor Techniques (PSS) segments income was decrease. The Related Safe Techniques (CSS) phase noticed a slight improve in income from the primary quarter of the 2024 fiscal yr.
The gross margin achieved within the second quarter of the present fiscal yr was 38.6 p.c, in contrast with 43.2 p.c within the prior quarter. The adjusted gross margin was 41.1 p.c, in contrast with 44.9 p.c within the first quarter of the fiscal yr.
The Phase End result within the second quarter of the 2024 fiscal yr was €707 million, in contrast with €831 million within the prior quarter. The Phase End result Margin achieved was 19.5 p.c, in contrast with 22.4 p.c within the first quarter.
The Non-Phase End result for the second quarter of the 2024 fiscal yr was a web lack of €211 million, in contrast with a web lack of €129 million within the prior quarter. The second-quarter Non-Phase End result comprised €91 million regarding value of products bought, €18 million regarding analysis and growth bills and €54 million regarding promoting, basic and administrative bills. As well as, it included web working bills of €48 million. This determine contains impairment losses of €37 million regarding the write-down of property in reference to the deliberate sale of two backend manufacturing websites in Cheonan (South Korea) and Cavite (Philippines).
Working revenue for the second quarter of the 2024 fiscal yr reached €496 million, in contrast with €702 million within the prior quarter.
The monetary outcome within the second quarter of the present fiscal yr was a web lack of €12 million, in contrast with a web acquire of €25 million within the prior quarter. The monetary outcome for the primary quarter included curiosity earnings of €32 million arising on the discharge of a tax danger provision together with the acquisition of Cypress.
The tax expense within the second quarter of the 2024 fiscal yr amounted to €93 million, in contrast with €134 million within the prior quarter.
Revenue from persevering with operations within the second quarter of the present fiscal yr was €394 million, in contrast with €598 million within the first quarter. The outcome from discontinued operations was €0 million, after a lack of €11 million within the previous quarter. The revenue for the interval achieved within the second quarter of the present fiscal yr was €394 million. Within the first quarter of the 2024 fiscal yr, the revenue for the interval was €587 million.
Earnings per share from persevering with operations decreased within the second quarter of the 2024 fiscal yr to €0.30, from €0.45 within the prior quarter (fundamental and diluted in every case). Adjusted earnings per share1 (diluted) stood at €0.42 on the finish of the second quarter of the present fiscal yr, in contrast with €0.53 one quarter earlier.
Investments – which Infineon defines because the sum of investments in property, plant and gear, investments in different intangible property and capitalized growth prices –totaled €643 million within the second quarter of the present fiscal yr, in contrast with €653 million within the first quarter. Depreciation and amortization within the second quarter of the 2024 fiscal yr amounted to €467 million, in contrast with €456 million within the previous quarter.
Free Money Flow2 improved within the second quarter of the present fiscal yr to €82 million, in contrast with a destructive determine of €1,597 million within the prior quarter. The determine for the primary quarter of the 2024 fiscal yr included buy worth funds of round €800 million regarding the acquisition of firms, primarily the acquisition of GaN Techniques Inc. Annual bonus funds had been additionally made within the first quarter of the 2024 fiscal yr for the file 2023 fiscal yr.
The gross money place decreased from €2,712 million on the finish of the primary quarter of the 2024 fiscal yr to €2,583 million on the finish of the second quarter. In the midst of the second quarter, the dividend of €456 million was paid and €233 million was utilized to purchase again personal shares associated with the worker inventory choice plan. Set in opposition to this was the problem of a €500 million bond. Monetary debt at 31 March 2024 stood at €5,941 million, in contrast with €5,398 million at 31 December 2023. The online money place was due to this fact a destructive quantity of €3,358 million, in contrast with a destructive quantity of €2,686 million on the finish of the primary quarter.
Phase earnings for the second quarter of the 2024 fiscal yr
ATV phase income remained secure within the second quarter of the 2024 fiscal yr, totaling €2,078 million, in contrast with €2,085 million within the first quarter. Set in opposition to rising revenues in electromobility was a barely decrease stage of income from ADAS. Income from classical automotive elements was unchanged. The Phase End result within the second quarter of the present fiscal yr was €512 million, in contrast with €564 million within the first quarter of the 2024 fiscal yr. The Phase End result Margin achieved was 24.6 p.c, in contrast with 27.1 p.c within the prior quarter.
Within the second quarter of the 2024 fiscal yr, GIP phase income decreased by 4 p.c to €469 million, in contrast with €487 million within the first quarter. Because of excessive direct buyer and distributor stock, demand within the areas of renewable power and power infrastructure was weaker. The Phase End result within the second quarter of the present fiscal yr amounted to €89 million, in contrast with €130 million within the first quarter of the 2024 fiscal yr. The Phase End result Margin was 19.0 p.c, in contrast with 26.7 p.c within the prior quarter.
PSS phase income decreased within the second quarter of the 2024 fiscal yr by 7 p.c to €713 million, in contrast with €765 million within the prior quarter. The rationale for the decline in income was ongoing weak demand for elements for PCs, notebooks, shopper electronics, battery-powered gadgets and microinverters for roof-top photo voltaic programs. Income from silicon microphones and elements for smartphones continued to get better. The Phase End result achieved within the second quarter of the present fiscal yr was €64 million, in contrast with €99 million within the first quarter. The Phase End result Margin was 9.0 p.c, in contrast with 12.9 p.c within the prior quarter.
CSS phase income elevated barely within the second quarter of the 2024 fiscal yr to €371 million, up from €364 million within the first quarter. The expansion in income of two p.c was primarily the results of a better stage of gross sales regarding Wi-Fi. The Phase End result rose to €42 million, from €37 million within the prior quarter. The Phase End result Margin elevated to 11.3 p.c, from 10.2 p.c within the first quarter.
Outlook for the 2024 fiscal yr
Primarily based on an assumed trade price of US$1.10 to the euro, income within the 2024 fiscal yr is now anticipated to be round €15.1 billion plus or minus €400 million (beforehand €16 billion plus or minus €500 million). The adjustment of the forecast for the fiscal yr is because of extended weak demand in main goal markets in addition to ongoing destocking at direct clients and distributors.
Within the Automotive phase, income progress within the low to mid-single-digit share vary is now anticipated. The lower in income within the Inexperienced Industrial Energy phase as compared with the prior fiscal yr is anticipated to be a low-teens share determine. The decline in income in Energy & Sensor Techniques is forecast to be within the high-teens and within the Related Safe Techniques phase within the low-twenties share vary. With anticipated income within the 2024 fiscal yr of €15.1 billion, the adjusted gross margin must be within the low-forties share vary and the Phase End result Margin is anticipated to be round 20 p.c. The Phase End result Margin for the Automotive phase is anticipated to be on the decrease finish of the aforementioned vary of between 25 and 28 p.c.
Investments – which Infineon defines because the sum of investments in property, plant and gear, investments in different intangible property and capitalized growth prices – at the moment are being barely adjusted to a determine of about €2.8 billion (beforehand about 2.9 billion) for the 2024 fiscal yr. The main focus right here might be investments within the manufacturing module on the Kulim website (Malaysia), which is designed to provide compound semiconductors, in addition to the manufacturing module in Dresden (Germany), designed to provide analog/mixed-signal elements.
Depreciation and amortization are anticipated to be round €1.9 billion within the 2024 fiscal yr, of which round €400 million is attributable to amortization of buy worth allocations arising primarily from the acquisition of Cypress. Adjusted Free Money Circulation, which is adjusted for funding in giant frontend buildings and the acquisition of GaN Techniques, is now anticipated to be about €1.6 billion (beforehand €1.8 billion), which is about 11 p.c of the forecast income for the yr of €15.1 billion. Reported Free Money Circulation must be round €0 million (beforehand €200 million). Return on Capital Employed (RoCE) is now forecast to succeed in round 9 p.c. When the figures for Q1 FY 2024 had been revealed, RoCE for the 2024 fiscal yr was anticipated to be round 11 p.c.
Outlook for the third quarter of the 2024 fiscal yr
Primarily based on an assumed trade price of US$1.10 to the euro, Infineon expects to generate income of round €3.8 billion within the third quarter of the 2024 fiscal yr. Income within the ATV and CSS segments ought to develop in-line with group common quarter-on-quarter. Quarter-on-quarter progress price for the GIP phase is anticipated to be belowand for PSS past group common. Primarily based on this income forecast for the Group, the Phase End result Margin must be within the high-teens share vary.
Structural enchancment program “Step Up” to strengthen competitiveness
The Firm needs to additional strengthen its competitiveness. To this finish, Infineon is beginning the “Step Up” program specializing in a focused, sustainable enchancment of its value construction. This system contains numerous packages of measures specializing in the areas of producing productiveness, portfolio administration, pricing high quality and working value optimization with out compromising the Firm’s progressive energy.
This system is anticipated to have a optimistic impact on the Phase End result within the excessive triple-digit million euro vary per yr (primarily based on the 2023 fiscal yr). The primary monetary advantages are anticipated in the midst of the 2025 fiscal yr. The total impact is anticipated to point out within the first half of the 2027 fiscal yr.
Phone press convention and analyst phone convention
The Administration Board of Infineon will host a phone press convention with the media at 8:00 am (CEST), 2:00 am (EDT). It may be adopted over the Web in each English and German. As well as a phone convention name together with a webcast for analysts and buyers (in English solely) will happen at 9:30 am (CEST), 3:30 am (EDT). Throughout each calls, the Infineon Administration Board will current the Firm’s outcomes for the second quarter of the 2024 fiscal yr in addition to the outlook for the third quarter and the 2024 fiscal yr. The conferences may also be accessible stay and for obtain on Infineon’s web site at www.infineon.com/investor
The Q2 Investor Presentation is offered (in English solely) at:
https://www.infineon.com/cms/en/about-infineon/investor/reports-and-presentations/
FINANCIAL INFORMATION
In keeping with IFRS – Unaudited
The next monetary information pertains to the second quarter of the 2024 fiscal yr ended 31 March 2024 and the corresponding prior quarter and prior yr interval.
Revenues, Outcomes and Margins of the Segments
Phase Result’s outlined as working revenue excluding sure web impairments and reversal of impairments, the affect on earnings of restructuring and closures, share-based cost, acquisition-related depreciation/amortization and different expense, affect on earnings of gross sales of companies or pursuits in subsidiaries, and different earnings (expense).
Reconciliation of Phase End result to working revenue
Reconciliation to adjusted earnings and adjusted earnings per share – diluted
Earnings per share in accordance with IFRS are influenced by quantities regarding buy worth allocations for acquisitions (specifically Cypress), in addition to by different distinctive objects. To allow higher comparability of working efficiency over time, Infineon computes adjusted earnings per share (diluted) as follows:
Adjusted revenue (loss) for the interval and adjusted earnings per share (diluted) shouldn’t be seen as a substitute or superior efficiency indicator, however quite as extra data to the revenue (loss) for the interval and earnings per share (diluted) decided in accordance with IFRS.
Reconciliation to adjusted value of products bought and gross margin
The price of items bought and the gross margin in accordance with IFRS are influenced by quantities regarding buy worth allocations for acquisitions (specifically Cypress) in addition to by different distinctive objects. To allow higher comparability of working efficiency over time, Infineon computes the adjusted gross margin as follows:
Adjusted value of products bought and the adjusted gross margin shouldn’t be seen as a substitute or superior efficiency indicator, however quite as extra data to value of products bought and the gross margin decided in accordance with IFRS.
Variety of workers
Consolidated Assertion of Monetary Place
Consolidated Assertion of Money Flows
Gross and Internet Money Place
The next desk reveals the gross money place and the online money place. Since some liquid funds are held within the type of monetary investments which for IFRS functions aren’t labeled as money and money equivalents, Infineon stories on its gross and web money positions as a way to present buyers with a greater understanding of its general liquidity state of affairs. The gross and web money positions are decided as follows from the Consolidated Assertion of Monetary Place:
Free Money Circulation
Infineon stories the Free Money Circulation determine, outlined as money flows from working actions and money flows from investing actions, each from persevering with operations, after adjusting for money flows from the acquisition and sale of monetary investments. Free Money Circulation serves as an extra efficiency indicator, since Infineon holds a part of its liquidity within the type of monetary investments. This doesn’t imply that the Free Money Circulation calculated on this method is offered to cowl different disbursements, as dividends, debt-servicing obligations and different mounted disbursements haven’t been deducted. Free Money Circulation shouldn’t be seen as a substitute or as a superior efficiency indicator, however quite as a helpful merchandise of knowledge along with the disclosure of the money circulate reported within the Consolidated Assertion of Money Flows, and as a supplementary disclosure to different liquidity efficiency indicators and different efficiency indicators decided in accordance with IFRS. Free Money Circulation is derived as follows from the Consolidated Assertion of Money Flows:
Condensed Consolidated Assertion of Money Flows
D I S C L A I M E R
This press launch incorporates forward-looking statements concerning the enterprise, monetary situation and earnings efficiency of the Infineon Group.
These statements are primarily based on assumptions and projections resting upon presently accessible data and current estimates. They’re topic to a mess of uncertainties and dangers. Precise enterprise growth might due to this fact differ materially from what has been anticipated. Past disclosure necessities stipulated by regulation, Infineon doesn’t undertake any obligation to replace forward-looking statements.
As a consequence of rounding, numbers introduced all through this press launch and different stories might not add up exactly to the totals offered and percentages might not exactly mirror absolutely the figures.
All figures talked about on this press launch are unaudited.