Investor and Analyst Call

Investor and Analyst Call
28 May 2015
Dr. Stefan Hofschen
President, Chip Card & Security (CCS)
Infineon Technologies AG
Agenda
 Infineon CCS Division Overview
 Growth Drivers
 Summary
Disclaimer:
This presentation 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.
2015-05-28
Copyright © Infineon Technologies AG 2015. All rights reserved.
Page 2
Agenda
 Infineon CCS Division Overview
 Growth Drivers
 Summary
2015-05-28
Copyright © Infineon Technologies AG 2015. All rights reserved.
Page 3
Infineon CCS is Delivering Consistent
Improvement in Revenue and Profitability
CCS revenue and Segment Result development
200
[EUR m]
182
150
108
108
119
142
129
108
121
123
14%
132
18%
15%
14%
100
10%
9%
50
0
20%
8%
9%
6%
8%
6%
5%
7%
10
7
10
12
6
8
10
20
18
32
Q1 FY13
Q2
Q3
Q4
Q1 FY14
Q2
Q3
Q4
Q1 FY15
Q2
CCS revenue
CCS Segment Result
0%
CCS SR Margin
Select customers of CCS
2015-05-28
Copyright © Infineon Technologies AG 2015. All rights reserved.
Page 4
Infineon has Industry’s Broadest Security
Portfolio
Smart Cards, Electronic Documents
Smart Card Payment
Mobile Payment
National eID
Mobile Communication
Transport, Ticketing
ePassport
Access Control
Pay TV
eDriver License
Object ID / Tags
USB Token
eHealth / eSocial
2015-05-28
Embedded Security
Trusted Computing
(TPM)
embedded Secure
Element (NFC)
Machine-toMachine
Smart Metering
Authentication
Digital Tachograph
Copyright © Infineon Technologies AG 2015. All rights reserved.
Page 5
Agenda
 Infineon CCS Division Overview
 Growth Drivers
 Summary
2015-05-28
Copyright © Infineon Technologies AG 2015. All rights reserved.
Page 6
Mobile Payment and Transition to Chipbased, Contactless Cards are Key Trends
Mobile payment gaining
momentum
2015-05-28
Ongoing migration from
magnetic stripe to chipbased payment cards in the
US and China
Copyright © Infineon Technologies AG 2015. All rights reserved.
Increasing share of dual
interface and
contactless cards
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Infineon is Well-placed to Benefit From the
Payment Market Trends
Payment card market development
Infineon’s success
[units m]
CAGR: 8%
4 in every
10 card
Infineon is world’s leader in
EMVCo certified chip-based
payment cards: four in every
ten new payment cards in 2014
is with an Infineon chip
Expanding
Position
Over the past quarters, Infineon
has gained greater footprint at
global and regional customers especially in the US and China
Dual Interface and
Contactless
Currently, more than 50% of
payment card IC revenues come
from dual interface and
contactless segment
2,950
1,979
2014
2019
Source: IHS, March 2015
2015-05-28
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Page 8
In addition, Infineon has Strong Momentum
in Mobile Payment in Various Form Factors
Embedded Secure Element Chip in
Samsung Galaxy S6 and S6 edge
Boosted NFC Secure Element Chip in
Watchdata's Smart Watch and Wristband
Courtesy: Samsung
Courtesy: Watchdata
 Infineon’s embedded Secure Element
(eSE) can safeguard the functionalities of
the mobile device as well as transactions
with sensitive user data
 Watchdata’s smart watch and wristband
are not just personal sport management
devices but also can also serve as contactless tickets when taking public
transportation
2015-05-28
Copyright © Infineon Technologies AG 2015. All rights reserved.
Page 9
Electronic IDs Market is Growing
Consistently
Increasing number of government
identity applications are using chips for
sensitive, high-security data and
applications
2015-05-28
More and more countries are adopting
electronic documents
Copyright © Infineon Technologies AG 2015. All rights reserved.
Page 10
Infineon’s Electronic ID Business is Growing
Successfully
Electronic ID market development
Infineon’s success
[units m]
CAGR: 15%
More than
70%
1,124
Steady
Growth
From the beginning of 2015,
Infineon chip secures more than
70% of ePassports issued in 20
largest EU countries
Infineon has a strong project
win momentum in electronic
document markets
554
Leading
Innovation
2014
2019
Infineon supports key trends via
innovations like larger memory
sizes and faster interface
Source: IHS, March 2015
2015-05-28
Copyright © Infineon Technologies AG 2015. All rights reserved.
Page 11
Security is Essential for the Growth of
Internet of Things
The Internet of Things devices and
infrastructures require device and IP
protection, data privacy and secure
communication
2015-05-28
There is a growing need for protecting
smart cars, smart homes, connected
industrial systems etc. from getting
hacked and related loss of valuable
identity and data
Copyright © Infineon Technologies AG 2015. All rights reserved.
Page 12
Infineon is Very Well Positioned to Provide
Security for IoT
IoT market development
Infineon’s success
[units m]
Broad
Portfolio
Infineon offers a broad portfolio
of security solutions for IoT:
smart cars, smart homes,
connected industrial control
systems etc.
Incumbent
Position
CCS is the leader in securing
IoT applications like connected
cars; leveraging on coverage of
other Infineon divisions
Ecosystem
Reach
With leading ecosystem players
like Deutsche Telekom, Cisco,
Infineon is developing security
in various IoT applications
CAGR: 39%
6,082
1,161
2014
2019
Source: Gartner, 2014
2015-05-28
Copyright © Infineon Technologies AG 2015. All rights reserved.
Page 13
Infineon Secures the Connected Car
Hardware Security
Module for AURIX
Microcontrollers
Cloud Access
and eCall for
Leading
Carmakers
Digital Tachograph
for Continental
Courtesy: Continental
2015-05-28
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Page 14
Infineon is on Course to Deliver Solid
Growth in the Next Years
Payment
Electronic Identification
CCS revenue growth projection:
2015-05-28
IoT Security
6 - 9% per annum
Copyright © Infineon Technologies AG 2015. All rights reserved.
Page 15
Agenda
 Infineon CCS Division Overview
 Growth Drivers
 Summary
2015-05-28
Copyright © Infineon Technologies AG 2015. All rights reserved.
Page 16
Infineon: Leading Provider of Security
Solutions for the Connected World
Favorable market trends
 Security continues to gain greater importance
as people and things are getting connected
Strong business performance
 Infineon CCS is delivering strong top line and
bottom line performance
 Strong business performance coming from all
key applications
Business outlook
 Infineon is ready for continued growth in future:
via high customer orientation, eco-system
partnerships, global reach, market-shaping
innovations, and broad portfolio
2015-05-28
Copyright © Infineon Technologies AG 2015. All rights reserved.
Page 17

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