Infineon Technologies : Annual Report 2022 with the Group Consolidated Financial Statements (IFRS)

Annual Report 2022

Infineon Technologies AG

1

Contents

 2 Infineon key data  3 Infineon at a glance

 4 Management Board and

Supervisory Board

 4 Letter to shareholders  8 The Management Board

10 Report of the Supervisory Board to the Annual General Meeting

18	Combined Management Report	84	Consolidated Financial Statements
19	Business model	85	Consolidated Statement of
26	Group strategy		Profit or Loss
33	Research and development	85	Consolidated Statement of
36	Internal management system		Comprehensive Income
39	Review of the semiconductor	86	Consolidated Statement of Financial Position
	industry	87	Consolidated Statement of Cash Flows
41	2022 fiscal year	88	Consolidated Statement of Changes
57	Infineon on the capital market		in Equity
60	Overall statement on Infineon's	90	Notes to the Consolidated
	financial condition		Financial Statements
61	Report on outlook, risk and	164	Further information
	opportunity
	164	Responsibility Statement by
76	Infineon Technologies AG
	the Management Board
79	Corporate Governance
165	Independent Auditor's Report
83	List of references
172	Applications and product range
		176	Chart overview
		176	List of abbreviations
		177	Financial calendar 2023
		178	Imprint

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Infineon|  Annual Report 2022

Management Board and Supervisory Board

Combined Management Report

Infineon key data1

Fiscal year from 1 October to	2022		2021
30 September
		€ in	in % of		€ in	in % of
			millions	revenue		millions	revenue
Revenue by segment		14,218					11,060
Automotive	6,516			45	4,841			44
Industrial Power Control	1,790			13	1,542			14
Power & Sensor Systems	4,070			29	3,268			29
Connected Secure Systems		1,822			13		1,397			13
Other Operating Segments	20			0	12			0
Corporate and Eliminations			-	-		-	-
Revenue by region		14,218					11,060
Europe, Middle East, Africa		3,399			24		2,773			25
therein: Germany	1,594			11	1,278			12
Asia-Pacific (excluding Japan, Greater China)	2,343			16	1,744			16
Greater China 2	5,204			37	4,195			38
therein: Mainland China, Hong Kong	4,063			29	3,178			29
Japan		1,415			10		1,094			10
Americas	1,857			13	1,254			11
therein: USA	1,564			11	1,027			9
Gross profit/Gross margin		6,131			43.1		4,260			38.5
Research and development expenses		(1,798)			12.6		(1,448)			13.1
Selling, general and administrative expenses		(1,565)			11.0		(1,354)			12.2
Operating profit	2,845				1,470
Profit (loss) from continuing operations	2,186				1,175
Profit (loss) from discontinued operations,
net of income taxes		(7)					(6)
Profit (loss) for the period	2,179				1,169
Segment Result/Segment Result Margin	3,378			23.8	2,072			18.7
Property, plant and equipment	5,545				4,443
Total assets	26,912				23,334
Total equity		14,944					11,401

Infineon|  Annual Report 2022

Consolidated Financial Statements

Further information

2

2022/2021	Fiscal year from 1 October to	2022	2021	2022/2021
	30 September
Change in	€ in		€ in		Change in
%		millions		millions	%

29 Cash flows from operating activities

		from continuing operations	3,986	3,063	30
35
		Cash flows from investing activities	(2,441)	(2,284)	(7)
16
		Cash flows from financing activities		(1,869)		(885)		(111)
25
		Free Cash Flow 3	1,648	1,574	5
30
		Depreciation and amortization	1,664	1,513	10
67
		Investments 3	2,310	1,497	54
-
		Gross cash position 3	3,717	3,922	(5)
		Net cash position 3		(1,945)		(2,663)		27
29
		Basic earnings per share in €		1.65		0.87		90
23
		Diluted earnings per share in €	1.65	0.87	90
25
		Adjusted earnings per share in € - diluted 4	1.97	1.20	64
34
		Dividend per share in € 5	0.32	0.27	19
24
		Equity ratio 6		55.5%		48.9%
28
		Return on Capital Employed (RoCE) 3	12.6%	8.4%
29
48
		Infineon employees as of 30 September	56,194	50,288	12
52

1 Totals may differ due to rounding.

44 2 Greater China comprises Mainland China, Hong Kong and Taiwan.

	3	See the chapter "Internal management system" for definition.	p. 36 ff.
24
4	See the chapter "Review of results of operations" for definition.	p. 51
	5	A dividend per share of €0.32 for the 2022 fiscal year will be proposed to the Annual General Meeting on 16 February 2023.

16 6 Equity ratio = Total equity / Total assets.

94

86

(17)

86

63

25

15

31

Management Board and Supervisory Board

Combined Management Report

Consolidated Financial Statements

Further information

3

Infineon at a glance

Infineon Technologies AG is a world leader in semiconductor solutions that make life easier, safer and greener. Microelectronics from Infineon is the key to a better future. In the 2022 fiscal year (ending 30 September), the Company reported revenue of approximately €14.2 billion with some 56,200 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).

Revenue

€14.218 bn	Dividend of
+29%	32 cents
	per share planned

Segment Result

and Margin

€3.378 bn   23.8%

56,194

employees

Infineon|  Annual Report 2022

Management Board and Supervisory Board	Combined Management Report	Consolidated Financial Statements	Further information	4
Letter to shareholders

Letter to shareholders

Neubiberg, November 2022

Over the next ten years, decarbonization and digitalization will profoundly change the world we live in. Only a major shift from fossil fuels to renewable energy and the corresponding restructuring of our energy system will limit global warming and preserve our planet's resources for future generations. Making that transition to a sustainable society and sustainable industry is only feasible with digital technology, which enables completely new solutions that make life better for us humans. The green transformation and the digital transformation go hand in hand.

Infineon is a key player in overcoming these global challenges. For me, it is a great honor as CEO since April 2022, to lead a company that provides the essential building blocks for a climate-neutral and digitized world, together with my colleagues on the Management Board. With its capacity for innovation, Infineon is an extraordinary company. I believe there is no better team and no better place to be working on a worthwhile future for the generations to come.

Challenging conditions for our business

Our macroeconomic and geopolitical environment is currently severely impacted by a number of factors. The war in Ukraine is causing not only unspeakable human suffering but also shortages and rising prices for energy and key raw materials. High rates of inflation are depressing demand and making central banks adopt more restrictive monetary policies. Climate change is having a noticeable impact, with increasingly extreme weather events. The coronavirus pandemic is not over and is continuing to impose restrictions on global supply chains. All these factors are having an adverse impact on economic growth.

Jochen Hanebeck

Chief Executive Officer

Infineon|  Annual Report 2022