06.05.2014
Infineon Technologies AG DE0006231004
DGAP-Adhoc: Infineon Technologies AG: Future investments ratio targeted at about 13% of sales compared to about 15% so far / Higher free cash flow enables Infineon to increase the dividend by between four and six cents per share as early as the 2014 fisca
Infineon Technologies AG / Key word(s): Results Forecast/Dividend
06.05.2014 12:57
Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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With effect from the 2015 fiscal year, Infineon Technologies AG intends to
reduce its target ratio of investments to revenue over the cycle from the
current about 15% to about 13%.
Even with the reduced capital intensity, it will still be possible to
achieve the targeted average revenue growth rate of approximately 8% p.a.
over the cycle. The reduction of the target ratio for investments as a
percentage of revenue is being driven primarily by the following factors:
- Infineon is beginning to reap the fruits of 300-millimeter thin-wafer
technology for power semiconductors, enabling it to achieve growth with
a substantially lower level of capital employed compared with
200-millimeter wafers. The level of investments required to increase
manufacturing capacities for power semiconductors in order to achieve
the targeted growth rate is therefore decreasing.
- Infineon is also in the early stages of a growth curve for products
manufactured using standard-CMOS-based technologies with 65-nanometer
and lower process structures. Unlike with power semiconductors, these
technologies do not entail any major differentiating features from a
manufacturing perspective and, as a result, Infineon intends to
outsource the relevant production volumes to contract manufacturers,
thus obviating the need in future to invest in in-house facilities to
process these wafers.
- The Company intends to allocate a greater share of backend
manufacturing to subcontractors for those package types that offer no
meaningful differentiation. Similarly, unlike in-house production, this
will not involve any investment.
- Great strides have been made over the course of the 2014 fiscal year to
date to improve both current and future productivity by means of a
whole raft of measures implemented in conjunction with a dedicated
productivity improvement program. This enables higher production
volumes for a given amount of capital investment.
A detailed analysis of the medium- to long-term impact of these factors,
undertaken as part of the annual planning process, showed that the target
ratio for investments to revenue can be reduced in future fiscal years by 2
percentage points to an average of about 13% over the cycle.
In view of the expected sustainable improvement in free cash flow, it is
planned to increase the dividend significantly from as early as the current
financial year. Subject to there being an appropriate level of
unappropriated profit available for distribution and the corresponding
resolutions being taken by Infineon's representative bodies, the aim is to
increase the dividend by between four and six cents.
"Infineon is determined to ensure excellent product availability and to
grow faster than its competitors. The fact that we will need to employ less
capital in future to achieve this, clearly demonstrates that we are on the
right track with our manufacturing strategy", stated Dr. Reinhard Ploss,
CEO of Infineon Technologies AG. "It is justified that shareholders should
also now benefit from the progress made. Therefore it is our intention to
raise the dividend significantly for the current fiscal year."
Neubiberg, May 6, 2014
Infineon Technologies AG
The Management Board
About Infineon
Infineon Technologies AG, Neubiberg, Germany, offers semiconductor and
system solutions addressing three central challenges to modern society:
energy efficiency, mobility, and security. In the 2013 fiscal year (ending
September 30), the company reported sales of Euro 3.84 billion with close
to 26,700 employees 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).
D I S C L A I M E R
This announcement 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.
06.05.2014 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
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Language: English
Company: Infineon Technologies AG
Am Campeon 1-12
85579 Neubiberg
Germany
Phone: +49 (0)89 234-26655
Fax: +49 (0)89 234-955 2987
E-mail: [email protected]
Internet: www.infineon.com
ISIN: DE0006231004
WKN: 623100
Indices: DAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart;
Terminbörse EUREX
End of Announcement DGAP News-Service
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