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DGAP-News: Infineon Technologies AG / Key word(s): Quarter Results/Forecast
- 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."
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.
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
OUTLOOK FOR THE 2022 FISCAL YEAR
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 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 Q4 Investor Presentation is available (in English only) at:
- 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
- 17 Feb 2022 Annual General Meeting
- 9 May 2022* Earnings Release for the Second Quarter of the 2022
- 3 Aug 2022* Earnings Release for the Third Quarter of the 2022
- 15 Nov 2022* Earnings Release for the Fourth Quarter and the 2022
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
D I S C L A I M E R
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.
10.11.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
Infineon Technologies AG
Am Campeon 1-15
+49 (0)89 234-26655
+49 (0)89 234-955 2987
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