Q4 FY 2023: REVENUE €4.149 BILLION, SEGMENT RESULT €1.044 BILLION, SEGMENT RESULT MARGIN 25.2 PERCENT, FREE CASH FLOW €614 MILLION FY 2023: REVENUE €16.309 BILLION, UP 15 PERCENT ON THE PRIOR YEAR; SEGMENT RESULT €4.399 BILLION, UP 30 PERCENT YEAR ON YEAR; SEGMENT RESULT MARGIN 27.0 PERCENT; ADJUSTED EARNINGS PER SHARE €2.65, UP 35 PERCENT ON THE PRIOR YEAR; FREE CASH FLOW €1.158 BILLION, ADJUSTED FREE CASH FLOW €1.638 BILLION OUTLOOK FOR FY 2024: BASED ON AN ASSUMED EXCHANGE RATE OF US$1.05 TO THE EURO, REVENUE OF AROUND €17 BILLION (PLUS OR MINUS €500 MILLION) EXPECTED, WITH A SEGMENT RESULT MARGIN OF AROUND 24 PERCENT AT THE MID-POINT OF THE GUIDED REVENUE RANGE. ADJUSTED GROSS MARGIN SHOULD BE AROUND 45 PERCENT. INVESTMENTS OF APPROXIMATELY €3.3 BILLION PLANNED. FREE CASH FLOW ADJUSTED FOR INVESTMENT IN FRONTEND BUILDINGS AND THE ACQUISITION OF GAN SYSTEMS SHOULD BE AROUND €2.2 BILLION AND REPORTED FREE CASH FLOW AROUND €400 MILLION OUTLOOK FOR Q1 FY 2024: BASED ON AN ASSUMED EXCHANGE RATE OF US$1.05 TO THE EURO, REVENUE OF AROUND €3.8 BILLION EXPECTED. ON THIS BASIS, SEGMENT RESULT MARGIN FORECAST TO BE AROUND 22 PERCENT DIVIDEND PROPOSAL FOR FY 2023: INCREASE FROM €0.32 TO €0.35 PER SHARE Neubiberg, 15 November 2023 – Today, Infineon Technologies AG is reporting results for the fourth quarter and the full fiscal year, both of which ended on 30 September 2023. "In the 2023 fiscal year, Infineon has set new records for revenue and profitability. The results are an initial confirmation of our more ambitious course we embarked on as a company a year ago," says Jochen Hanebeck, CEO of Infineon. "Nevertheless, we find ourselves in an environment that continues to present challenges. We are seeing different trends in our target markets. Structural semiconductor growth in the areas of renewable energy, electromobility – especially in China – and microcontrollers for the automotive industry remains unabated. In contrast, consumer, communication, computing and IoT applications are experiencing a temporary period of low demand. Overall, we are expecting revenue growth to continue in the 2024 fiscal year but at a slower rate. We are reacting decisively to the market situation. At the same time, we are continuing to implement our strategy consistently with regard to structural growth opportunities and we are reinforcing our leading position in power systems and IoT with long-term investments."
| Euro in millions | Q4 FY23 | Q3 FY23 | +/- in % |
| | | | |
| Revenue | 4,149 | 4,089 | 1 |
| Gross margin (in %) | 43.6% | 44.5% | |
| Adjusted gross margin1 (in %) | 45.5% | 46.2% | |
| Segment Result | 1,044 | 1,067 | (2) |
| Segment Result Margin (in %) | 25.2% | 26.1% | |
| Profit (loss) from continuing operations | 748 | 835 | (10) |
| Profit (loss) from discontinued operations, net of income taxes | 5 | (4) | +++ |
| Profit (loss) for the period | 753 | 831 | (9) |
| | | | |
| in Euro | | | |
| Basic earnings (loss) per share | 0.57 | 0.63 | (10) |
| Diluted earnings (loss) per share | 0.57 | 0.63 | (10) |
| Adjusted earnings (loss) per share diluted1,2 | 0.65 | 0.68 | (4) |
1 The reconciliation of net income to adjusted net income and adjusted earnings per share as well as of cost of goods sold to adjusted cost of goods sold and adjusted gross margin can be found in the quarterly information at
www.infineon.com. 2 The calculation for earnings per share and for adjusted earnings per share is based on unrounded figures. GROUP PERFORMANCE IN THE FOURTH QUARTER OF THE 2023 FISCAL YEAR In the fourth quarter of the 2023 fiscal year, Group revenue was €4,149 million, an increase of 1 percent on the figure for the previous three-month period of €4,089 million. The Automotive (ATV), Green Industrial Power (GIP) and Connected Secure Systems (CSS) segments recorded an increase in revenue, while the Power & Sensor Systems (PSS) segment showed a slight decrease. The gross margin in the fourth quarter was 43.6 percent, compared with 44.5 percent in the third quarter of the 2023 fiscal year. The adjusted gross margin was 45.5 percent, compared with 46.2 percent in the previous quarter. The Segment Result in the fourth quarter of the 2023 fiscal year was €1,044 million, compared with €1,067 million in the previous quarter. The Segment Result Margin reached 25.2 percent, compared with 26.1 percent in the third quarter. The fourth-quarter Non Segment Result was a net loss of €132 million, compared with a net loss of €71 million in the previous three-month period. The Non Segment Result for the fourth quarter comprised €79 million relating to cost of goods sold, €57 million relating to selling, general and administrative expenses and €12 million relating to research and development expenses. Also included in the total for the fourth quarter was a net figure for other operating income of €16 million. As in the third quarter, this includes part of the gain on the sale of the Temecula site (USA), although the amount included in the fourth quarter is smaller. Operating profit for the fourth quarter of the 2023 fiscal year was €912 million, compared with €996 million in the third quarter. The financial result in the fourth quarter was a net financial loss of €6 million, compared with a net financial loss of €5 million in the third quarter. The tax expense in the fourth quarter of the 2023 fiscal year was €163 million, compared with €167 million in the preceding quarter. Profit from continuing operations in the fourth quarter of the 2023 fiscal year was €748 million, compared with €835 million in the previous three-month period. The result from discontinued operations in the fourth quarter was a profit of €5 million (third quarter: loss of €4 million). The profit for the period in the fourth quarter of the 2023 fiscal year was €753 million. In the third quarter, the profit for the period was €831 million. Earnings per share from continuing operations stood at €0.57 at the end of the fourth quarter of the 2023 fiscal year, compared with €0.63 one quarter earlier (basic and diluted in each case). Adjusted earnings per share3 (diluted) stood at €0.65 at the end of the fourth quarter of the 2023 fiscal year, compared with €0.68 one quarter earlier. Investments – which Infineon defines as the sum of investments in property, plant and equipment, investments in other intangible assets and capitalized development costs – increased in the fourth quarter of the 2023 fiscal year to €1,057 million, up from €786 million in the preceding three-month period. Depreciation and amortization in the fourth quarter was €450 million, compared with €441 million in the third quarter of the 2023 fiscal year. The Free-Cash-Flow in the fourth quarter of the 2023 fiscal year was €614 million, compared to €326 million in the preceding quarter. Cash flows from operating activities from continuing operations rose to €1,652 million, compared with €1,033 million in the third quarter of the 2023 fiscal year. The gross cash position at the end of the fourth quarter of the 2023 fiscal year was €3,590 million, up from €2,986 million as of 30 June 2023. Financial debt at 30 September 2023 stood at €4,733 million, compared with €4,679 million as of 30 June 2023. The net cash position was a negative amount of €1,143 million, compared with a negative amount of €1,693 million at the end of the third quarter. PROPOSED DIVIDEND FOR THE 2023 FISCAL YEAR: €0.35 PER SHARE Infineon’s dividend policy is aimed at allowing its shareholders to participate appropriately in the success of the business. The dividend distributed for the 2022 fiscal year of €0.32 per share was €0.05 higher than the figure for the previous year. It is planned to put forward a proposal to the Annual General Meeting in February 2024 to increase the dividend again by €0.03 per share to reflect the successful 2023 fiscal year, while at the same time retaining the financial headroom of the Company for profitable growth. Should the Annual General Meeting approve the planned proposal, the dividend payment for the 2023 fiscal year would rise to €0.35. The number of shares issued remained unchanged as of 30 September 2023 at 1,305,921,137. This figure now includes 2,171,026 shares owned by the Company that are not entitled to a dividend. The total amount to be distributed to shareholders is therefore anticipated to rise to €456 million, compared with €417 million one year earlier. OUTLOOK FOR THE 2024 FISCAL YEAR Based on an assumed exchange rate of US$1.05 to the euro, revenue of around €17 billion (plus or minus €500 million) is forecast for the 2024 fiscal year, equivalent to a growth rate of around 4 percent compared with the 2023 fiscal year. Revenue growth in the ATV segment is expected to be in the low double-digit percentage range. Revenue in the GIP segment should remain more or less stable compared with the previous year. The PSS segment and the CSS segment are each forecast to see a decline in revenue in the high single-digit percentage range. With expected revenue in the 2024 fiscal year of around €17 billion, the adjusted gross margin should be around 45 percent and the Segment Result Margin around 24 percent. Investments – which Infineon defines as the sum of investments in property, plant and equipment, investments in other intangible assets and capitalized development costs – are planned at around €3.3 billion for the 2024 fiscal year. The focus here will be on the completion of Phase 1 of the third manufacturing module on the Kulim site (Malaysia), which is designed to produce compound semiconductors, and the commencement of Phase 2. Furthermore, a large proportion of the funds will be invested in the construction of the fourth manufacturing module in Dresden (Germany), designed to produce analog/mixed-signal components and power semiconductors. Considerable funds are also being invested in the machinery to manufacture products based on silicon carbide and gallium nitride. Depreciation and amortization are anticipated to be about €2.1 billion in the 2024 fiscal year, of which approximately €400 million is attributable to amortization of purchase price allocations arising mainly from the acquisition of Cypress. Adjusted Free Cash Flow, which has been adjusted for investment in frontend buildings and the purchase of GaN Systems, is expected to be about €2.2 billion, which is around 13 percent of the forecast revenue for the year of €17 billion. Reported Free Cash Flow should be around €400 million. OUTLOOK FOR THE FIRST QUARTER OF THE 2024 FISCAL YEAR Based on an assumed exchange rate of US$1.05 to the euro, Infineon expects to generate revenue of around €3.8 billion in the first quarter of the 2024 fiscal year. Revenue in the ATV segment is forecast to stay at the same level as in the previous quarter. In the GIP, PSS and CSS segments, revenue in the first quarter is forecast to decrease by a mid-teens percentage range. Based on this revenue forecast for the group, the Segment Result Margin should be around 22 percent. 3 Adjusted net income and adjusted earnings per share (diluted) should not be seen as a replacement or superior performance indicator, but rather as additional information to the net income and earnings per share (diluted) determined in accordance with IFRS. Infineon’s segments’ performance in the fourth quarter of the 2023 fiscal year can be found in the quarterly information at
www.infineon.com. All figures in this quarterly information are preliminary and unaudited. ANALYST TELEPHONE CONFERENCE AND TELEPHONE PRESS CONFERENCE The Management Board of Infineon will host a telephone conference call including a webcast for analysts and investors (in English only) on 15 November 2023 at 9:30 am (CET), 3:30 am (EST). During the call, the Infineon Management Board will present the Company’s results for the fourth quarter of the 2023 fiscal year as well as the outlook for the first quarter and the 2024 fiscal year. In addition, the Management Board will host a press conference with the media at 11:00 am (CET), 5:00 am (EST). It can be followed over the Internet in both English and German. Both conferences will also be available live and for download on Infineon’s website at
www.infineon.com/investor The Q4 Investor Presentation is available (in English only) at:
https://www.infineon.com/cms/en/about-infineon/investor/reports-and-presentations/ INFINEON FINANCIAL CALENDAR (* preliminary) 16 – 17 Nov 2023 Morgan Stanley European TMT Conference, Barcelona 27 – 28 Nov 2023 Power presentation (GIP, PSS) and roadshow with Peter Wawer, Head of GIP and Adam White, Head of PSS, Paris 28 – 29 Nov 2023 UBS TMT Conference, Scottsdale 30 Nov 2023 Société Générale The Premium Review, Paris 4 Dec 2023 Stifel Roadshow, Frankfurt 6 Dec 2023 Berenberg European Conference, Pennyhill Park 6 Feb 2024* Earnings Release for the First Quarter of the
2024 Fiscal Year 23 Feb 2024* Annual General Meeting 7 May 2024* Earnings Release for the Second Quarter of the 2024
Fiscal Year 5 Aug 2024* Earnings Release for the Third Quarter of the 2024
Fiscal Year 12 Nov 2024* Earnings Release for the Fourth Quarter and the 2024
Fiscal Year ABOUT INFINEON Infineon Technologies AG is a global semiconductor leader in power systems and IoT. Infineon drives decarbonization and digitalization with its products and solutions. The Company has around 58,600 employees worldwide and generated revenue of about €16.3 billion in the 2023 fiscal year (ending 30 September). Infineon is listed on the Frankfurt Stock Exchange (ticker symbol: IFX) and in the USA on the OTCQX International over-the-counter market (ticker symbol: IFNNY). Further information is available at
https://www.infineon.com/ Follow us:
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LinkedIn D I S C L A I M E R This press release contains forward-looking statements about the business, financial condition and earnings performance of the Infineon Group. These statements are based on assumptions and projections resting upon currently available information and present estimates. They are subject to a multitude of uncertainties and risks. Actual business development may therefore differ materially from what has been expected. Beyond disclosure requirements stipulated by law, Infineon does not undertake any obligation to update forward-looking statements. Due to rounding, numbers presented throughout this press release and other reports may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. All figures mentioned in this press release are preliminary and unaudited.
Contact:
Andre Tauber, Media Relations, phone: +49 89 234 23888
