DGAP-News: Infineon Technologies AG / Key word(s): Quarter Results/Forecast 
Infineon Technologies AG: POSITIVE EARNINGS AND FREE CASH FLOW DEVELOPMENT. INCREASE IN REVENUE DESPITE DIFFICULT 
SUPPLY ENVIRONMENT. STRONG FINAL QUARTER EXPECTED 
2021-08-03 / 07:30 
The issuer is solely responsible for the content of this announcement. 
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- Q3 FY 2021: REVENUE EUR2.722 BILLION; SEGMENT RESULT EUR496 MILLION; SEGMENT RESULT MARGIN 18.2 PERCENT; FREE CASH FLOW 
EUR477 MILLION 
- OUTLOOK FOR Q4 FY 2021: BASED ON AN ASSUMED EXCHANGE RATE OF USUSD1.20 TO THE EURO, REVENUE OF AROUND EUR2.9 BILLION IS 
EXPECTED. ON THIS BASIS, SEGMENT RESULT MARGIN IS FORECAST AT AROUND 19 PERCENT 
- OUTLOOK FY 2021: BASED ON THE OUTLOOK FOR Q4 FY 2021, REVENUE FOR THE FULL FISCAL YEAR IS PREDICTED AT ABOUT EUR11 
BILLION. AT THIS LEVEL, A SEGMENT RESULT MARGIN OF ABOVE 18 PERCENT IS EXPECTED. INVESTMENTS STILL EXPECTED AT 
APPROXIMATELY EUR1.6 BILLION. FREE CASH FLOW ANTICIPATED TO COME IN AROUND EUR1.5 BILLION 
Neubiberg, Germany, 3 August 2021 - Today, Infineon Technologies AG is reporting results for the third quarter of the 
2021 fiscal year (period ended 30 June 2021). 
"Demand for semiconductors is unbroken, as they play a key role in enabling the energy transition and digitalization. 
Currently, however, the market is faced with an extremely tight supply situation," said Dr. Reinhard Ploss, CEO of 
Infineon. "Inventories are at a historic low; our chips are being shipped from our fabs straight into the end 
applications. Under these circumstances, any pandemic-related restrictions on manufacturing, such as those recently 
imposed in Malaysia, are especially grave. We are doing our utmost to improve matters along the entire value chain and 
are working as flexibly as possible in the best interests of our customers. At the same time, we are continuously 
building up additional capacity." 
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. 
Euro in millions                                                 Q3 FY21 Q2 FY21 +/- in % 
 
Revenue                                                            2,722   2,700        1 
Segment Result                                                       496     470        6 
Segment Result Margin                                              18.2%   17.4% 
Income (loss) from continuing operations                             245     209       17 
Income (loss) from discontinued operations, net of income taxes        -     (6)      +++ 
Net income (loss)                                                    245     203       21 
 
in Euro 
Basic earnings (loss) per share from continuing operations^1        0.18    0.15       20 
Basic earnings (loss) per share from discontinued operations^1         -       -        - 
Basic earnings (loss) per share^1                                   0.18    0.15       20 
 
Diluted earnings (loss) per share from continuing operations^1      0.18    0.15       20 
Diluted earnings (loss) per share from discontinued operations^1       -       -        - 
Diluted earnings (loss) per share^1                                 0.18    0.15       20 
 
Adjusted earnings (loss) per share diluted^2                        0.27    0.24       13 
 
Gross margin                                                       39.1%   36.0% 
Adjusted gross margin^2                                            41.8%   39.3%

^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. GROUP PERFORMANCE IN THIRD QUARTER OF 2021 FISCAL YEAR In the third quarter of the current fiscal year, Group revenue rose by EUR22 million to EUR2,722 million, compared to EUR2,700 million in the preceding three-month period. Despite continued strong demand, revenue grew by only 1 percent due to pandemic-related constraints on our manufacturing capacity in Melaka, Malaysia, and the aftermath of the winter storm in Austin, Texas. These various factors have primarily affected the Automotive (ATV) and Power & Sensor Systems (PSS) segments, both of which saw a decline in revenue compared to the previous quarter. By contrast, the Industrial Power Control (IPC) and Connected Secure Systems (CSS) segments recorded revenue growth.

The gross margin improved significantly from 36.0 percent to 39.1 percent quarter-on-quarter. The adjusted gross margin for the three-month period under report came in at 41.8 percent, up from 39.3 percent in the preceding quarter.

The Segment Result increased from EUR470 million to EUR496 million quarter-on-quarter, with the Segment Result Margin rising from 17.4 percent to 18.2 percent.

The non-segment result for the third quarter was a net loss of EUR149 million, compared to a net loss of EUR156 million in the previous three-month period. The non-segment result for the quarter included EUR74 million of cost of goods sold, EUR60 million of selling, general and administrative expenses and EUR6 million of research and development expenses. Net other operating expenses amounting to EUR9 million were also recorded in the third quarter.

Operating income for the third quarter of the current fiscal year rose to EUR347 million, compared with EUR314 million in the preceding three-month period.

The financial result amounted to minus EUR56 million compared with minus EUR42 million in the previous quarter.

The tax expense added up to EUR49 million, down from EUR62 million one quarter earlier.

Income from continuing operations improved from EUR209 million to EUR245 million quarter-on-quarter. Income from discontinued operations in the third quarter was break-even, compared to a loss of EUR6 million in the previous three-month period. Accordingly, net income for the third quarter of the current fiscal year also amounted to EUR245 million, compared with EUR203 million one quarter earlier.

Earnings per share from continuing operations increased to EUR0.18 (basic and diluted), compared to EUR0.15 in the preceding three-month period. Adjusted earnings per share^3 (diluted) improved from EUR0.24 to EUR0.27 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 - totaled EUR285 million in the third quarter of the 2021 fiscal year, compared with EUR332 million in the preceding three-month period. Depreciation and amortization increased from EUR368 million to EUR380 million quarter-on-quarter.

Free cash flow continued to improve in the third quarter of the current fiscal year, rising to EUR477 million, compared with EUR407 million in the previous quarter. Net cash provided by operating activities from continuing operations went up from EUR742 million to EUR762 million.

At the end of the third quarter, the gross cash position stood at EUR3,863 million, up from EUR3,444 million at 31 March 2021. Net debt decreased further from EUR3,415 million to EUR2,945 million over the course of the three-month period. Gross debt amounted to EUR6,808 million at the end of the third quarter, compared with EUR6,859 million at 31 March 2021.

OUTLOOK FOR THE FOURTH QUARTER OF THE 2021 FISCAL YEAR Based on an assumed exchange rate of USUSD1.20 to the euro, Infineon expects to generate revenue of around EUR2.9 billion in the fourth quarter of the 2021 fiscal year. While demand is rising at a dynamic pace, the overall supply situation remains tight due to various factors, including the pandemic-related manufacturing restrictions in Melaka, Malaysia, at the beginning of the quarter. In light of ongoing bottlenecks, revenue generated by the ATV and IPC segments is likely to remain at a similar level to the previous quarter. The CSS segment is forecast to record a slightly higher level of revenue. PSS segment revenue is set to rise sharply, mainly due to the recovery of demand for smartphones. At the level of revenue currently forecast, the Segment Result Margin is expected to come in at about 19 percent.

OUTLOOK FOR THE 2021 FISCAL YEAR Based on the predicted level of revenue for the fourth quarter and an assumed unchanged exchange rate of USUSD1.20 to the euro, revenue is expected to total around EUR11 billion for the full 2021 fiscal year. At this level, the Segment Result Margin is forecast to come in at above 18 percent.

Investments in property, plant and equipment, intangible assets and capitalized development costs for the 2021 fiscal year are forecast at an unchanged level of around EUR1.6 billion. Depreciation and amortization are also expected to remain unchanged at between EUR1.5 billion and EUR1.6 billion, of which approximately EUR500 million is attributable to depreciation and amortization from purchase price allocations arising mainly in connection with the acquisition of Cypress and to a lesser extent with the acquisition of International Rectifier. Free cash flow is now anticipated to come in at around EUR1.5 billion.

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August 03, 2021 01:30 ET (05:30 GMT)