2__financial

Summary consolidated statements of operations data

As of and for the financial year ended September 30 (Figures in EUR millions, except where otherwise stated)
	1999	2000	2001

Net sales	4,237	7,283	5,671
Cost of goods sold	-3,011	-4,110	-4,904
Gross profit	1,227	3,172	767
Research and development expenses	-739	-1,025	-1,189
Selling, general and administrative expenses	-551	-670	-786
Restructuring charge 1)	–	–	-117
Other operating income (expense), net	-2	2	199

Operating income (loss)	-64	1,479	-1,125
Interest income (expense), net, inclusive of subsidies	43	75	-1
Equity in earnings (losses) of associated companies	34	101	25
Gain on associated company share issuance 2)	–	53	11
Other income, net	18	36	65
Minority interests	–	-6	5
Income (loss) before income taxes	31	1,738	-1,019
Income tax benefit (expense)	30	-612	429
Net income (loss)	61	1,126	-591
Basic earnings (loss) per share 3)	0.10	1.83	-0.92
Diluted earnings (loss) per share 3)	0.10	1.83	-0.92


1)	Consists of amounts attributable to the Impact cost saving project in 2001 and to the fabrication facility located in the North Tyneside area of northern England, which was shut down in 1998.
2)	In the years 2000 and 2001, ProMOS shareholders approved the distribution of employee bonuses in the form of shares. As a result of this distribution, our proportional share of ProMOS’ shareholders’ equity increased by €53 million in 2000 fiscal year and by €11 million in 2001 fiscal year. The increase is reflected as non-operating income in the 2000 and 2001 financial year.
3)	Earnings per share data for the 1996 to 1999 financial years assume that 600 million shares, the number of shares outstanding immediately prior to our initial public offering in March 2000, were outstanding for all periods presented. For the 2000 financial year, the weighted average number of our company’s shares outstanding was 613,862,876, or 615,121,186 on a fully diluted basis. For the 2001 financial year, the weighted average number of our company’s shares outstanding was 640,566,801 on a basic and fully diluted basis.

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Summary consolidated balance sheets data

As of and for the financial year ended September 30 (Figures in EUR millions, except where otherwise stated)
	1999	2000	2001

Cash and cash equivalents	30	511	757
Marketable securities	–	498	93
Inventories	677	841	882
Total current assets	2,523	3,835	2,876
Property, plant and equipment, net	3,014	4,034	5,233
Long-term investments, net	130	432	655
Restricted cash	64	132	86
Total assets	6,445	8,853	9,743
Short-term debt, including current portion of long-term debt	495	138	119
Long-term debt, excluding current portion	135	128	249
Shareholders’ equity	3,655	5,806	6,900

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Summary consolidated statements of cash flows data

As of and for the financial year ended September 30 (Figures in EUR millions, except where otherwise stated)
	1999	2000	2001

Net cash provided by operating activities	469	2,080	211
Net cash used in investing activities	-918	-2,327	-1,813
Depreciation and amortization	573	834	1,122
Purchases of property, plant and equipment	-653	-1,571	-2,282

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Net sales in detail

As of and for the financial year ended September 30 (Figures in EUR millions, except where otherwise stated)
		1999		2000		2001

Net sales		4,237	100%	7,283	100%	5,671	100%
By Region:
	Germany	1,241	29%	1,612	22%	1,745	31%
	Other Europe	1,203	28%	1,647	23%	1,260	22%
	USA	827	20%	1,814	25%	1,262	22%
	Asia/Pacific	899	21%	2,100	29%	1,309	23%
	Others	67	2%	110	1%	95	2%
By Business Group:
	Wireline Communication	499	12%	665	9%	768	14%
	Wireless Solutions	865	20%	1,221	17%	997	18%
	Security and Chip Card ICs 4)	276	7%	375	5%	588	10%
	Memory Products	1,406	33%	3,473	48%	1,588	28%
	Automotive & Industrial Electronics	665	16%	880	12%	1,099	19%
	Others 5)	526	12%	669	9%	631	11%


4)	Prior to the 2001 financial year, the Security and Chip Card ICs segment did not meet the requirements of a reportable segment and was reported as part of the Other Operating segment. For the 2001 financial year, the Security and Chip Card ICs segment is identified as a reportable segment and due to its continuing significance, is reported separately, with prior period segment information restated for comparative purposes.
5)	Consisting of "Other Operating Segments" and "Corporate and Reconciliation". Effective October 1, 2000, our Other operating segment includes the results of certain activities previously reported under Corporate and Reconciliation, the image & video and infrared components businesses (previously reported under Wireline Communications) as well as the gains on their disposals. The segment results for the 1999 and 2000 financial years have been reclassified to be consistent with the reporting structure and presentation of the 2001 financial year, and to facilitate analysis of our current and future operating segment information. The Other operating segment also includes our opto components business that is conducted through a joint venture with OSRAM, a Siemens subsidiary. We sold our interest in the joint venture to OSRAM in August 2001.

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EBIT in detail

As of and for the financial year ended September 30 (Figures in EUR millions, except where otherwise stated)
		1999	2000	2001

EBIT 6)		-13	1,670	-1,024
By Business Group:
	Wireline Communications	22	47	-95
	Wireless Solutions	182	261	-178
	Security and Chip Card ICs	24	49	27
	Memory Products	-238	1,337	-931
	Automotive & Industrial Electronics	23	69	145
	Others 7)	-26	-93	8


6)	We define EBIT (earnings before interest and tax) as earnings before interest, taxes and minority interest.
7)	Consisting of "Other Operating Segments" and "Corporate and Reconciliation". Effective October 1, 2000, our Other operating segment includes the results of certain activities previously reported under Corporate and Reconciliation, the image & video and infrared components businesses (previously reported under Wireline Communications) as well as the gains on their disposals. The segment results for the 1999 and 2000 financial years have been reclassified to be consistent with the reporting structure and presentation of the 2001 financial year, and to facilitate analysis of our current and future operating segment information. The Other operating segment also includes our opto components business that is conducted through a joint venture with OSRAM, a Siemens subsidiary. We sold our interest in the joint venture to OSRAM in August 2001. In the 2001 financial year, we revised our method of reporting excess capacity costs for segment reporting purposes. Previously, all excess capacity costs, if any, were allocated to the segments based on the variance between originally forecasted purchases and actual purchases. We have revised the method to allocate excess capacity costs to a foundry model, whereby such allocations are reduced based upon the lead time of order cancellations. Any unabsorbed excess capacity costs will be included in corporate and reconciliation. This change did not affect prior periods. We believe that this method better reflects the responsibilities of the segment management and is consistent with the practices of independent foundries and more appropriately reflects the segment operating results. Certain items are included in corporate and reconciliation and are not allocated to the segments. These include corporate headquarters’ cost, certain incubator and early stage technology investment costs, non-recurring gains and specific strategic technology initiatives. Additionally, legal costs associated with intellectual property are recognized by the segments when paid, which can differ from the period originally recognized by corporate and reconciliation. For the year ended September 30, 2001 corporate and reconciliation includes unallocated excess capacity costs of €27 million, restructuring charges of €117 million and corporate information technology development costs and charges of €71 million.

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Key Figures

As of and for the financial year ended September 30 (Figures in EUR millions, except where otherwise stated)

	1999	2000	2001

Gross margin (% of revenues)	29%	44%	14%
Equity ratio	57%	66%	71%
Debt-equity ratio 8)	17%	5%	5%
Net Cash 9)	-537	874	568


8)	Equivalent to short-term and long-term debt divided by total shareholders' equity.
9)	Equivalent to cash and cash equivalents plus marketable securities plus restricted cash less short-term and long-term debt.

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The IFX Share (as of September 30) 10)

As of and for the financial year ended September 30
		1999	2000	2001

Dividend per share (€) 11)		–	0.65	–
Stock price performance
	All-time high Xetra Trading System (€)	n/a	93.6	58.25
	All-time low Xetra Trading System (€)	n/a	49.5	11.52
	Closing price Xetra Trading System (€)	n/a	54.88	13.50
	Average daily trading volume	n/a	2,304,229	3,121,172
	thereof in Xetra Trading System	n/a	80%	91%
	Closing price New York Stock Exchange (US$)	n/a	47.50	12.39
Number of shares outstanding and market capitalization
	Shares outstanding (weighted average)	n/a	614.0m	641.0m
Shares outstanding (as of September 30)		n/a	625.5m	693.0m
Market capitalization (€bn)		n/a	34.327	9.356
Market capitalization (US$bn)		n/a	29.711	8.586

10)	Initial Public Offering (IPO) on March 13, 2000 in Frankfurt and New York.
11)	As the company did not exist as a separate legal entity prior to March 30th 1999, we can present dividend information only subsequent to that date.

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Employees (in total figures)

As of and for the financial year ended September 30
		1999	2000	2001

Total		25,779	29,166	33,813
By Region:
	Germany	12,853	14,247	16,814
	Other Europe	2,842	3,409	5,007
	USA	2,563	2,838	3,023
	Asia/Pacific	7,521	8,672	8,949
	Other	-	-	20
By Function: 12)
	Production	n/a	20,371	23,416
	Research & development	n/a	4,733	5,510
	Sales & marketing	n/a	2,043	2,259
	Administrative	n/a	2,019	2,628

12)	Employee numbers by function tracked since Infineon's formation as an independent company.

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