Core Investment Criteria - An ideal investment operates in a sector expected to experience structural growth exceeding GDP growth over the next 5-10 years [1] - It benefits from sustainable competitive advantages that lead to attractive unit economics [1] - The investment should be managed by competent, ethical, and long-term thinkers [1] - A fair valuation is essential for the investment [1]

Financial Data and Key Metrics Changes - Group revenues for Q1 2025 amounted to EUR 3.424 billion, reflecting a steep quarterly decline of 13% but exceeding predictions by about EUR 200 million [13][12] - The segment result was EUR 573 million, with a segment result margin of 16.7%, impacted by revenue contraction and high underutilization charges [14][12] - Adjusted gross margin decreased to 41.1% from a restated 43.3% in the previous quarter, primarily due to lower sales volume [41][42] Business Line Data and Key Metrics Changes - Automotive segment revenues were EUR 1.919 billion, with an 11% quarter-over-quarter decline, slightly better than anticipated, and a segment result of EUR 363 million with a margin of 18.9% [15][17] - Green Industrial Power (GIP) revenues fell to EUR 340 million, a 32% sequential decline, with a segment result margin of 10% [24][25] - Power & Sensor Systems (PSS) recorded revenues of EUR 820 million, a mild decline of 5%, with a segment result margin of 18.2% [28][29] - Connected Secure Systems (CSS) revenues were EUR 344 million, down 15% from the previous quarter, with a segment result margin of 8.7% [35][36] Market Data and Key Metrics Changes - The order backlog at the end of December stood at around EUR 20 billion, remaining stable quarter-over-quarter [14] - The automotive market in China showed a 10% increase in sales volume quarter-over-quarter, contrasting with weaker European markets [16][18] - Global PMI readings remain soft, indicating ongoing cyclical market weakness in industrial applications [25] Company Strategy and Development Direction - The company is focusing on innovation and structural improvements while managing current market conditions [11][12] - Infineon aims to lead in the automotive semiconductor market, particularly in e-mobility and software-defined vehicles, leveraging its broad customer base [19][20] - The company is investing in silicon carbide technology, expecting to grow revenues in this area by a low double-digit percentage in 2025 [22][83] Management Comments on Operating Environment and Future Outlook - Management anticipates a modest recovery in the second half of the fiscal year, despite ongoing inventory corrections in automotive and industrial sectors [55][56] - The company expects revenues for Q2 2025 to be around EUR 3.6 billion, influenced by a stronger U.S. dollar [58][60] - External factors such as geopolitical tensions and regulatory changes could significantly impact future demand [64][66] Other Important Information - The company has signed a EUR 2 billion committed standby revolving credit facility to enhance financial flexibility [52] - The annual revenue of the automotive sensor business line was around EUR 700 million in FY 2024, now transferred to PSS for better synergy [31] Q&A Session Summary Question: Dynamics of automotive outlook, particularly in China - Management highlighted that Infineon's exposure to growth drivers like AI and a broad customer base positions it favorably compared to competitors, with a notable 10% increase in automotive revenue in China [77][81] Question: Growth expectations for silicon carbide in 2025 - Management confirmed expectations for low double-digit growth in silicon carbide, supported by a broad customer base and successful design wins [82][83] Question: Insights on AI server power side and market share sustainability - Management expressed confidence in maintaining and growing market share in AI server power solutions, citing a comprehensive power flow solution and strong customer relationships [87][95] Question: Full-year guidance and potential upside - Management clarified that the guidance reflects a cautious approach, with currency benefits and AI server growth considered, while inventory digestion impacts are also factored in [100][103] Question: Genuine demand in China versus potential pull-in effects - Management acknowledged the strong automotive revenue in China but suggested that any pull-in effect from tariffs would likely be minor [108] Question: Revenue growth from EVs and hybrids - Management indicated expectations for growth in battery electric vehicles, with a focus on silicon carbide as a significant growth driver [132][135] Question: Inventory increase and management strategy - Management explained the increase in inventory days due to reduced revenues and significant supply, emphasizing the need to manage inventory in sync with revenue recovery [137][138]

First Quarter FY 2025 Quarterly Update Infineon Technologies AG Investor Relations 1 Infineon at a glance Addressing long-term high-growth trends Energy green and efficient Mobility clean and safe IoT smart and secure [EUR m] Revenue Segment result Segment result margin 1,353 1,319 1,170 2,072 3,378 4,399 18% 16% 14% 19% 24% 27% 16,309 14,218 11,060 8,567 8,029 7,599 14,955 3,105 21% FY24 revenue by segment 56% 13% 21% 10% Financials FY24 revenue by product category ~5% memory ICs ~10% RF & sensors ~30% emb ...

Core Viewpoint - The article discusses the importance of fundamental, income-oriented, long-term analysis in investment strategies across various sectors in developed markets [1]. Group 1 - Buy-side hedge professionals are focusing on conducting thorough analysis to identify investment opportunities [1]. - The analysis is aimed at generating income and ensuring long-term growth for investors [1].

Core Insights - Infineon Technologies AG and Fingerprint Cards AB have achieved certification for their SECORA™ Pay Bio payment card solution by Visa and Mastercard, marking a significant advancement in secure payment technology [1][4][5] Group 1: Product Features and Benefits - The SECORA™ Pay Bio solution integrates Fingerprints' FPC1323 sensor with Infineon's secured enclave, enhancing security and user convenience [2][9] - The biometric payment solution provides a touchless experience, increasing transaction speeds and hygiene, while offering strong 2-factor authentication as an alternative to traditional 4-digit PINs [9] - The product is designed for seamless integration with existing payment infrastructures, facilitating easy adoption by banks and financial institutions [9] Group 2: Market Position and Partnerships - The certification across both Visa and Mastercard reinforces the leadership positions of Infineon and Fingerprints in the biometric payment card sector [4] - Infineon has placed a volume order for sensors from Fingerprints, indicating a strong commitment to the biometric payment cards market [4][5] - The collaboration aims to simplify the design and manufacturing processes of biometric payment cards, enhancing the overall consumer experience [6]

Core Insights - Infineon Technologies AG has won the German Sustainability Award in the "Electrical Engineering and Electronics" category, highlighting its leadership in sustainability within the industry [2][5] - The award recognizes companies that make exemplary contributions to transformation and serve as role models [2][5] - Infineon is committed to achieving climate neutrality by 2030, having reduced emissions by over two-thirds since 2020 while nearly doubling its revenue [3][7] Group 1: Sustainability Achievements - Infineon has made significant progress in implementing its ambitious sustainability strategy, focusing on decarbonization and digitalization [3] - The company has begun reporting emissions at the individual product level, known as the Product Carbon Footprint, with data available for half of its products [3] - Infineon's new energy-saving silicon carbide (SiC) module enhances energy efficiency in high-performance electrical applications, contributing to sustainable innovation [4] Group 2: Industry Recognition - The German Sustainability Award is Europe's largest award for ecological and social commitment, with winners selected from around 2000 competing companies across 100 sectors [5] - The award is supported by various organizations, including the German Chamber of Industry and Commerce and WWF Germany, emphasizing its credibility and significance [5] Group 3: Company Overview - Infineon Technologies AG is a global leader in semiconductor technology, focusing on power systems and IoT, with approximately 58,060 employees and €15 billion in revenue for the 2024 fiscal year [7]

I recommended a buy rating for Infineon ( OTCQX:IFNNY ) when I wrote about it in August, as I believed the business has moved past the trough and growth should accelerate in the coming quarters. Based onI consider an investment ideal if it performs its core business in a sector projected to experience structural (organic) growth in excess of GDP growth over the next 5-10 years; profits from sustainable competitive advantages that translate into attractive unit economics; In the hands of competent, ethical, ...

Infineon and Stellantis Team Up to Advance Innovation in Power Conversion and Distribution for Next Generation of Vehicle Architectures Collaboration aims to significantly enhance cost, energy efficiency, driver experience and vehicle range Companies signed supply and capacity reservations for PROFET™ power switches and silicon carbide (SiC) CoolSiC™ semiconductors Infineon’s scalable production capacity is ready to meet the market demand for automotive semiconductor solutions AMSTERDAM and Munich, Germany ...

Infineon Technologies AG ( OTCQX:IFNNY )( OTCQX:IFNNF ) is a leading global provider of semiconductor solutions crucial for boosting the inextricably linked secular trends of digitalization and decarbonization. The company is focused on four main areas: 1) Semiconductors for Buy-side hedge professionals conducting fundamental, income oriented, long term analysis across sectors globally in developed markets. Please shoot us a message or leave a comment to discuss ideas.DISCLOSURE: All of our articles are a m ...

Munich, Germany and Gothenburg, Sweden, 17 September 2024 – Fingerprint Cards AB (STO: FING B) and Infineon Technologies AG (FSE: IFX / OTCQX: IFNNY) today announced SECORA™ Pay Bio, an all-inone biometric payment card solution that complies with Visa and Mastercard specifications. This new solution simplifies the process of producing biometric smart cards, making it as seamless and efficient as that of standard dual-interface payment cards. The solution integrates Infineon's enhanced SLC39B system-on-chip ...