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Infineon Technologies AG: INFINEON CLOSES 2021 FISCAL YEAR WITH RECORD QUARTER; OUTLOOK FOR 2022 CONFIRMED: REVENUE GROWTH IN MID-TEEN PERCENTAGE RANGE AND CONTINUED IMPROVEMENT IN PROFITABILITY

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DGAP-News: Infineon Technologies AG / Key word(s): Quarter Results/Forecast
10.11.2021 / 07:30
The issuer is solely responsible for the content of this announcement.

 

- Q4 FY 2021: REVENUE €3.007 BILLION, UP 10 PERCENT ON PRECEDING QUARTER AND 21 PERCENT ON PREVIOUS YEAR; SEGMENT RESULT €616 MILLION; SEGMENT RESULT MARGIN 20.5 PERCENT; FREE CASH FLOW €378 MILLION

- FY 2021: REVENUE €11.060 BILLION, UP 29 PERCENT YEAR ON YEAR; SEGMENT RESULT €2.072 BILLION; SEGMENT RESULT MARGIN 18.7 PERCENT; FREE CASH FLOW €1.574 BILLION

- OUTLOOK FOR Q1 FY 2022: BASED ON AN ASSUMED EXCHANGE RATE OF EUR/US$1.20, REVENUE OF AROUND €3 BILLION PREDICTED. ON THIS BASIS, SEGMENT RESULT MARGIN FORECAST AT AROUND 21 PERCENT

- OUTLOOK FOR FY 2022: BASED ON AN ASSUMED EXCHANGE RATE OF US$1.20 TO THE EURO, REVENUE OF €12.7 BILLION PLUS OR MINUS €500 MILLION FORECAST FOR 2022 FISCAL YEAR. AT MID-POINT OF GUIDED REVENUE RANGE, SEGMENT RESULT MARGIN OF ABOUT 21 PERCENT PREDICTED. INVESTMENTS AT ABOUT €2.4 BILLION PLANNED. FREE CASH FLOW EXPECTED TO REACH €1 BILLION

- DIVIDEND PROPOSAL FOR FY 2021: INCREASE FROM €0.22 TO €0.27 PER SHARE

Neubiberg, Germany, 10 November 2021 - Today, Infineon Technologies AG is reporting results for the fourth quarter and for the full 2021 fiscal year, both of which ended on 30 September 2021.

"Infineon has closed the 2021 fiscal year with an outstanding fourth quarter. We are stronger than ever and report revenue of over €11 billion for a full fiscal year for the first time, with significantly higher profitability," said Dr. Reinhard Ploss, CEO of Infineon. "Our corporate strategy is fully focused on the key trends of electrification and digitalization. We have established a first-class position that is enabling us to shape both of these fields with innovative technologies. In light of the continued high demand for semiconductors needed for the energy-efficient, connected world, we expect the 2022 fiscal year to be a strong one. We are investing significantly more in order to take advantage of opportunities to grow. We are continuing to expand our manufacturing capacities - for silicon as well as for the compound semiconductors silicon carbide and gallium nitride."

Euro in millions

Q4 FY21

Q3 FY21

+/- in %

 

 

 

 

Revenue

3,007

2,722

10

Segment Result

616

496

24

Segment Result Margin

20.5%

18.2%

 

Profit (loss) from continuing operations

465

245

90

Profit (loss) from discontinued operations, net of income taxes

(1)

-

---

Profit (loss) for the period

464

245

89

 

 

 

 

in Euro

 

 

 

Basic earnings (loss) per share from continuing operations1

0.36

0.18

+++

Basic earnings (loss) per share from discontinued operations1

-

-

-

Basic earnings (loss) per share1

0.36

0.18

+++

 

 

 

 

Diluted earnings (loss) per share from continuing operations1

0.36

0.18

+++

Diluted earnings (loss) per share from discontinued operations1

-

-

-

Diluted earnings (loss) per share1

0.36

0.18

+++

 

 

 

 

Adjusted earnings (loss) per share diluted1,2

0.41

0.27

52

 

 

 

 

Gross margin

41.2%

39.1%

 

Adjusted gross margin2

43.9%

41.8%

 

 

1 The calculation for earnings per share and for adjusted earnings per share is based on unrounded figures.

2 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.

The Cypress Semiconductor Corporation ("Cypress") has been fully consolidated since 16 April 2020. The comparability of current figures with the same period of the previous year is therefore limited.

GROUP PERFORMANCE IN FOURTH QUARTER OF THE 2021 FISCAL YEAR
In the fourth quarter of the 2021 fiscal year, Group revenue grew by €285 million to €3,007 million, compared with €2,722 million in the previous three-month period. The main reason for the significant 10 percent growth in revenue was the seasonally strong upturn in demand in the Power & Sensor Systems (PSS) segment. The Automotive (ATV) and Connected Secure Systems (CSS) segments also reported higher revenue than in the previous quarter, while revenue in the Industrial Power Control (IPC) segment decreased slightly.

The gross margin improved from 39.1 percent in the third quarter to 41.2 percent in the final three-month period. The adjusted gross margin came in at 43.9 percent, up from 41.8 percent one quarter earlier.

The Segment Result improved from €496 million to €616 million, with the Segment Result Margin rising accordingly from 18.2 percent to 20.5 percent.

The fourth-quarter non-segment result was a net loss of €138 million, compared with a net loss of €149 million in the previous three-month period. The non-segment result for the quarter included €83 million of cost of goods sold, €57 million of selling, general and administrative expenses and €6 million of research and development expenses. Net other operating income amounting to €8 million was also recorded in the fourth quarter.

Operating profit for the fourth quarter of the 2021 fiscal year rose to €478 million, compared with €347 million in the previous three-month period.

The financial result amounted to minus €37 million compared with minus €56 million in the previous quarter.

Tax income amounted to €16 million for the three-month period, compared with a tax expense of €49 million one quarter earlier. The tax income in the fourth quarter was influenced by the positive impact of the revaluation of deferred tax assets and the reduction of tax risk positions.

Profit from continuing operations increased to €465 million quarter on quarter, compared with €245 million in the preceding three-month period. Loss from discontinued operations in the fourth quarter was €1 million, compared with a break-even result for the previous three-month period. The profit for the period amounted to €464 million, up from €245 million in the third quarter.

Earnings per share from continuing operations increased to €0.36 (basic and diluted), compared to €0.18 one quarter earlier. Adjusted earnings per share3 (diluted) improved from €0.27 to €0.41 quarter on quarter.

Investments - which Infineon defines as the sum of purchases of property, plant and equipment, purchases of other intangible assets and capitalized development costs - rose to €596 million in the fourth quarter of the 2021 fiscal year, compared with €285 million in the preceding three-month period. Depreciation and amortization increased from €380 million to €397 million quarter on quarter.

Due to the significantly higher level of investments in the fourth quarter, free cash flow decreased to €378 million, compared with €477 million in the third quarter. Net cash provided by operating activities from continuing operations increased from €762 million to €971 million.

Despite the early partial repayment in September of borrowing amounting to €310 million taken out in connection with the acquisition of Cypress, the gross cash position increased to €3,922 million at the end of the fourth quarter, compared with €3,863 million at 30 June 2021. Financial debt decreased by only €223 million during the fourth quarter due to offsetting exchange rate effects and stood at €6,585 million as of 30 September 2021, compared with €6,808 million as of 30 June 2021. Net debt declined further from €2,945 million to €2,663 million over the course of the three-month period.

OUTLOOK FOR FIRST QUARTER OF THE 2022 FISCAL YEAR
Based on an assumed exchange rate of US$1.20 to the euro, Infineon expects to generate revenue of around €3 billion in the first quarter of the 2022 fiscal year. Revenue growth for the Automotive and Connected Secure Systems segments is forecast to be within a mid-to-high single-digit percentage range. By contrast, revenue generated by the Industrial Power Control and Power & Sensor Systems segments is expected to decrease by a low to mid-single-digit percentage. The Segment Result Margin should come in at around 21 percent if the forecast level of revenue is achieved.

OUTLOOK FOR THE 2022 FISCAL YEAR
Based on an assumed exchange rate of EUR/US$ 1.20, revenue of €12.7 billion (plus or minus 500 million) is forecast for the 2022 fiscal year. At the mid-point of the guided revenue range, Segment Result Margin is predicted to come in at about 21 percent. Automotive and Connected Secure Systems segments revenue is expected to increase at a higher percentage rate than Group revenue overall. The revenue growth rate in the Power & Sensor Systems segment is forecast to be at a similar level to that of the Group. Industrial Power Control segment revenue is expected to increase by a mid-to-high single-digit percentage.

Investments - which Infineon defines as the sum of purchases of property, plant and equipment, purchases of other intangible assets and capitalized development costs - are planned at around €2.4 billion for the 2022 fiscal year. The main focus is on expanding front-end manufacturing capacities with a view to enabling Infineon to continue meeting the expected growth in customer demand in the medium term.

Depreciation and amortization are predicted to be between €1.6 billion and €1.7 billion in the 2022 fiscal year. Approximately €400 million of that amount relates to depreciation and amortization resulting from purchase price allocations, mainly in connection with the acquisition of Cypress and, to a lesser degree, the acquisition of International Rectifier. Free cash flow is forecast at around €1 billion.

PROPOSED DIVIDEND FOR THE 2021 FISCAL YEAR: €0.27 PER SHARE
Infineon's dividend policy is aimed at allowing its shareholders to participate appropriately in the success of the business. However, due to the economic impact of the coronavirus pandemic, the risks that existed back then, and in order to maintain sufficient financial flexibility, a dividend of €0.22 was paid for the 2020 fiscal year, i.e. €0.05 lower than the amount distributed for the 2019 fiscal year. Due to Infineon's good economic performance in the 2021 fiscal year and its positive outlook for the current fiscal year, the dividend is now to be increased again by €0.05. Accordingly, a proposal is planned to be put forward at the Annual General Meeting in February 2022 to distribute a dividend of €0.27 per share for the 2021 fiscal year. The number of shares in issue totaled 1,305,921,137 as of 30 September 2021. The figure includes 4,545,602 shares owned by Infineon that are not entitled to a dividend. The total dividend available for distribution would therefore increase to €351 million, compared with €286 million in the previous fiscal year.

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 2021 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 PRESS CONFERENCE
The Management Board of Infineon will host a telephone conference call including a webcast for analysts and investors (in English only) on 10 November 2021 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 and the 2021 fiscal year as well as the outlook for the first quarter and the 2022 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)

- 17 - 18 Nov 2021 Morgan Stanley TMT Conference, Barcelona (virtual)

- 19 Nov 2021 JPMorgan 9th Global TMT Conference Asia, Hong Kong (virtual)

- 29 Nov - 2 Dec 2021 Credit Suisse TMT Conference, Scottsdale (AZ, USA)

- 2 Dec 2021 Société Général Premium Review Conference, Paris (virtual)

- 7 Dec 2021 Berenberg European Conference, Pennyhill Park (Surrey, UK)

- 9 Dec 2021 Deutsche Bank Auto Tech Day, London

- 3 Feb 2022* Earnings Release for the First Quarter of the 2022
Fiscal Year

- 17 Feb 2022 Annual General Meeting

- 9 May 2022* Earnings Release for the Second Quarter of the 2022
Fiscal Year

- 3 Aug 2022* Earnings Release for the Third Quarter of the 2022
Fiscal Year

- 15 Nov 2022* Earnings Release for the Fourth Quarter and the 2022
Fiscal Year

ABOUT INFINEON
Infineon Technologies AG is a world leader in semiconductor solutions that make life easier, safer and greener. Microelectronics from Infineon are the key to a better future. With around 50,280 employees worldwide, Infineon generated revenue of about €11.1 billion in the 2021 fiscal year (ending 30 September) and is one of the ten largest semiconductor companies worldwide.

Infineon is listed on the Frankfurt Stock Exchange (ticker symbol: IFX) and in the USA on the over-the-counter market OTCQX International Premier (ticker symbol: IFNNY). Further information is available at www.infineon.com
This press release is available online at www.infineon.com/press

Follow us: Twitter - Facebook - 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:
Bernd Hops, Media Relations, phone: +49 89 234 23888


10.11.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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, TecDAX

Listed:

Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange

EQS News ID:

1247548


 

End of News

DGAP News Service

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