Infineon Technologies AG: Decision to change target operating model
June 08, 2018 at 08:30 am EDT
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DGAP-Ad-hoc: Infineon Technologies AG / Key word(s): Strategic Company Decision
Infineon Technologies AG: Decision to change target operating model
08-Jun-2018 / 14:24 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
Infineon Technologies AG ("Company") has decided to change its target operating model, which sets average targets for revenue growth, segment result margin and investment-to-sales ratio over the cycle.
In view of the current strength of the order book and based on a euro/US dollar ex-change rate of 1.20, the Company expects revenue to grow at least in the coming 2019 fiscal year by a minimum of 10 percent. For the fiscal years following this phase of accelerated growth, the Company assumes that revenue will grow at an average annual rate of 9 percent, corresponding to an investment-to-sales ratio of 15 percent. Any increase/decrease in planned revenue growth will, for each percentage point, cause a slightly less pronounced change in the investment-to-sales ratio.
In addition to the investment-to-sales ratio described above, further investments in the low three-digit million euro range in total are planned over the coming years to enable the Company to exploit additional business opportunities and react appropriately to structural changes. Furthermore, the Company intends to invest a total of approximately EUR700 million in front-end cleanrooms and certain larger-scale office buildings during the coming five-year planning period. Of the investments in Villach (Austria) that have recently been announced, this figure includes the 300 mm cleanroom and the research and development building. Implementation of these measures on the stated scale will temporarily result in an investment-to-sales ratio well above the ratio envisaged in the target operating model.
The aim of these measures is to ensure the availability of the necessary production capacity up to about the middle of the next decade. It is currently forecast that, by that time, more than half of the power semiconductors produced by the Company will be manufactured on 300 mm wafers (in Dresden (Germany) and Villach).
Irrespective of the amount of additional investment activity, Infineon plans to gradually raise the segment result margin from its current target level of 17 percent.
08-Jun-2018 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de
Language:
English
Company:
Infineon Technologies AG
Am Campeon 1-15
85579 Neubiberg
Germany
Phone:
+49 (0)89 234-26655
Fax:
+49 (0)89 234-955 2987
E-mail:
investor.relations@infineon.com
Internet:
www.infineon.com
ISIN:
DE0006231004
WKN:
623100
Indices:
DAX
Listed:
Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange
Infineon Technologies AG is one of the world's leading manufacturers of semiconductors. The group's products include power semiconductors, sensors, microcontrollers, digital, mixed-signal and analog ICs, discrete semiconductor modules, switches, interface ICs, motor-controlling ICs, RF power transistors, voltage regulators, and electronic safety components. Net sales break down by area of activity as follows:
- automotive (50.5%): semiconductor products used in the automotive industry, and memory products for specific applications for automotive, industrial, information technologies, telecommunications and consumer electronics.
- power & sensor systems (23.3%): semiconductors for energy-efficient power supplies, mobile devices, mobile phone network infrastructures, human-machine interaction as well as applications with special demands on their robustness and reliability.
- industrial power control (13.5%): semiconductor products for the conversion of electrical energy for small, medium and high-power applications, used in the manufacturing, the low-loss transmission, the storage and the efficient use of electrical energy;
- connected secure systems (12.6%): semiconductors for networked devices, card-based applications, and government documents; microcontrollers for industrial, entertainment, and household applications, components for connectivity systems, various customer support systems;
- other (0.1%).
Net sales are distributed geographically as follows: Germany (12.4%), Europe/Middle East/Africa (14.4%), China/Hong Kong/Taiwan (32.3%), Japan (10.5%), Asia/Pacific (15.9%), the United States (12.1%) and Americas (2.4%).
INFINEON TECHNOLOGIES AG 
