Infineon Technologies AG (ETR:IFX)

AGM 2020

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Feb 20, 2020

We're living in a world that is constantly making inventions with revolutionary ideas and clever answers to important issues of our day. How are we going to spare the environment? What will mobility and future look like? How do we communicate? And how do we protect our data? Microelectronics can find solutions. It uses and links the digital and the real world. Semiconductors by Infineon ensure that technology can do more, use less and be available to everyone. That is what we stand for with our values reliability, innovation power, partnership and efficiency. We make life easier, safer and more environmentally compatible for a future worth living in. Infineon, Part of your life. My dear shareholders, ladies and gentlemen, I hereby open the ordinary general meeting of Infineon Technologies AG and welcome you, the owners of our company to this meeting. Furthermore, I would also like to welcome the shareholder representatives the media representatives and our guests here to the ICM. At today's Annual General Meeting All members of the Executive And Supervisory Board will participate. In accordance with our articles of incorporation, I will moderate today's annual general meeting as the chairman of the supervised report. Let me start with some housekeeping and formal remarks. This annual general meeting was convened through the announcement in the German federal Gazette on 13th January 2020. As in the previous years, Doctor. Goode, the notary public has been entrusted with taking the minutes of the AGM. Anyone who would like to get in touch with the notary during the meeting can approach the speaker's desk to do so. It is to the right of the stage from your perspective. The list of participants can be viewed from the start of the meeting at the entrance area of the ICM at the terminals. With the exception of the intermediaries, in particular, bank and shareholder associations. Everyone has received an admission and voting card as a shareholder, either in the conventional paper form or as a digital admission ticket and voting card on their cell phone or tablet, please make sure that you keep this card until the end of the AGM. You will need this admission card and voting card, for example, if you would like to take the floor during the AGM, in order to do so, you need to register with the speaker's desk. If you'd like to file any motions, please do so as early as possible and definitely before the end of a general debate. If you have filed any written questions or announce them in the run up to the AGM, it is necessary for you to present them verbally today again. In order to do so, please register with the speaker's desk as well. The voting procedure on the items on the agenda will be explained to you after the general debate by me. However, I would like to address one point right now. In the run up to the AGM, we received a counter motion which we immediately published on our website. This of individual members of the board. However, management maintains its draft resolutions for the approval of the act and also published their reasoning in an official statement. Irrespective of this, I hereby find that the vote on the approval of the acts of the executive board and the supervisory board will be voted on, for each member individually, this means that you can reach an individual decision on the approval of the acts of the board members. You can exercise your voting rights in person or if you want to leave the AGM early, proxies appointed by the company, you can submit your admission ticket and voting card at the exit control desk and completed accordingly. Alternatively, you will be able to use a tablet to issue authorizations and instructions to the voting proxies of the company. For all other cases of authorizations, you can receive a form that is available at the speakers' desks. Authorizations and instructions can be issued via the web through to the end of the general debate. They can also be amended and revoked. The same holds true, for the issuance change or revocation of absentee ballots. Here on-site authorizations and instructions as well as absentee ballots, can be issued made modified or revoked through to the end of the vote at the entrance or exit control. I'd also like to point out the following: if you received more than 1 admission ticket or voting card, be it in pay for a digital form, for instance, because you have several shared deposit accounts with various banks, please make sure that all of the corresponding shareholders have been recorded. If this hasn't happened yet, you can do this at the speaker's desk or at the entrance control desk. As announced in the convocation, the shareholders will be afforded the possibility of following the entire AGM via a live simulcast on the web Furthermore, the first part of the AGM with the report on the work of the supervised report and the speeches of Doctor. Plus and Doctor. Schneider, can be followed by everyone on the internet. We will not have a verbatim minutes of the proceedings here today. However, your questions and motions will be noted in order to make sure they can be processed properly would like to point out that from now on, you are not permitted to use, image and audio recording devices This also applies to recordings of the simulcast on the web. Ladies and gentlemen, this rounds up my statements on the formal and housekeeping remarks with regard to the AGM. I would now like to address all of the items of today's agenda. This brings me to item 1 of this agenda. Mission of the approved separate financial statements of Infineon Technologies AG and the approved consolidated financial statements, both as of 30 September 2019, the combined management report for Infineon Technologies AG and the Infineon Group and the report of the Supervisory Board for the 2019 fiscal year in each case. These documents and all other documents that have to be made available have been published on our website since the convocation of the AGM. You can receive these documents today at the information counter as well. The supervisory board has approved the financial statements for the parent company and the group, including the combined review of operations and the informational reports, the financial statements of the parent company, therefore adopted in accordance with Section 172 sentenced, 1 of the Stock Corporation Act, A passage on a resolution on this item on the agenda is therefore not necessarily. This brings me to the report of the supervised report Ladies and gentlemen, it is not just since the new president of the European Commission, Ms. Ursula Funderlion announced the green deal at the end of 2019 and announced that Europe should become climate neutral by 2050, that it has been clear that sustainability is not just the order of the day. Sustainability is without a doubt a challenge for generations. We all shoulder responsibility in this regard, not just in terms of politics, but also and above all, every single one of us must shoulder substantial responsibility and shouldn't just pass the buck. And of course, companies also must assume their responsibility I'd like to take this opportunity to quote Larry Fink, founder and CEO of BlackRock with nearly USD 7,000,000,000 under management and the world's biggest investor. And as such, representative, represented in many DAX companies, including Infineon, in his annual letter to the CEO, Fink, asked the companies to make sure that they placed higher importance on sustainability, than before in their actions. For black locks, sustainability is a key deciding factor when making investments, and this applies to all investors. We at Infineon have been living sustainability for a long time already. It has long been part of the Infineon DNA. Our production our products enable increasingly efficient generation transmission and use of electrical power and therefore, ensure a continuous optimization of the sustainability in central customer sectors. It is not just about our products leading to substantial savings of carbon dioxide and other emissions as well. We are also working on being climate neutral ourselves. Doctor. Ploss will give you some more commentary on the climate strategies to Infineon in his speech later on. Ladies and gentlemen, Lyft Sustainability translates into great accomplishments not just as a company, in technological terms and economic terms, but also to champion a livable future of our company. The most important strategic decision in the last fiscal year in our company was definitely the acquisition of the U. S. Company Cyprus Semiconductor Doctor. Plus will give you some more information on this in about a minute and give you an update on the status quo. And therefore, I can be brief at this juncture. In my role as the chairman of the Supervisory Board, the Supervisory Board has carefully weighed the opportunities and risk of this acquisition. Very carefully, I must add, in many sessions, including extraordinary meetings, It discussed all relevant issues and was informed on them extensively by the executive board. The debates were extensive and intensive. In summary, the supervisory board is fully convinced of the rationale behind the acquisition. Just as the executive board, where also of the opinion that the structural growth drivers of Infineon remain. They will gain momentum once the global economy picks up speed again. It is therefore important that the company prepare itself through strategic projects such as the Cyprus acquisition and continues to follow its profitable course for growth with Resolve and defend it. This in connection with a resolute expansion of innovation and technology leadership in these segments that are of key importance to us, in particular, in the Automotive And Energy sector. In view of the opportunities arising from the acquisition for Infineon, the Supervisory Board believes that the purchase price weighing all circumstances is appropriate. The executive board also provided a robust and serious financing concept for this, including various refinancing options. Against this backdrop, the supervisory board in the end issued its approval to the acquisition of the company and the key parameters of financing. The large scale acquisition also requires our equity share to be increased substantially, specifically the executive board implemented 2 refinancing measures to this end. First, in June 2019, a capital increase was conducted from approved capital, approximately 113,000,000 new shares with a net issuance proceeds of a good 1,000,000,000 were issued second, the company in October 2019 issued a hybrid bond with a volume of 1,000,000,000. Thereby significantly increasing the equity share of financing once again without this resulting in an additional dilution of the shares held by shareholders, that would have happened if further shares had been issued. It was also important to the Supervisory Board to be involved intensively in these financing measures. Therefore, We left the decision on the capital increase and the hybrid bond up to the Investment Finance And Audit Committee, but also to extraordinary meetings held by the plenary session Ladies and gentlemen, 2019 was not just characterized by the Cyprus acquisition, but also by major personnel decisions. For one, in the past fiscal year, the supervisory board decided that Doctor. Align Hut Plus should continue to stay at the helm of the company through to the end of 2022, his original tenure would have ended on the 30th September 2020 on behalf of the Supervisory Board, and I believe it is safe to say also on behalf of you all as shareholders, I would like to express my gratitude to Doctor. Plus at this juncture, for having, been instrumental in the successful course steered by Infineon, in the past years as CEO and that he has declared his willingness to continue doing this work going above and beyond his original tenure. In addition, in Doctor Sven Schneider, we want to renowned new CFO for our company right after, Dominic Asam, who had been our CFO for many years, had informed us of his plan to leave the company, the supervisory initiated a structured succession procedure. And so doing, the board was supported by a personnel consultancy firm within the scope of the selection process, both external candidates as well as internal applicants were evaluated after a series of interviews and in-depth debates above all in the executive committee, but also in the plenary session, the decision was reached to appoint Doctor. Schneider CFO of the company with effect from the 1st May 2019. His mandate and employment contract have an initial term of 3 years. Doctor. Schneider was previously the speaker of the Executive Board, CFO and Labor Director of Lindner. My dear, Doctor. Schneider, it already feels as if you have been here with us for much longer than 10 months. It almost feels as if you had been us, had been with us forever. In order to complete the staffing of the boards of Infineon, it is a great pleasure for me and honor for me, to have been afforded the possibility to assume chairmanship of the Supervisory Board as a successor to Doctor. Sooner at the beginning of August 2019. This brings me to executive board compensation in fiscal 2018, the Supervisory Board saw to it that the compensation system at Infineon and the target annual salaries of the Executive Board members were subjected to an external audit. The compensation expert reached the conclusion that the compensation system met the statutory regulations and the recommendations of the code. In particular, the Executive Board compensation was customary in comparison to the market and appropriate and the variable compensation was oriented towards the sustainable development of the company in addition the target annual salaries of the executive board members was generally appropriate. Irrespective of existing room The supervisory board, dealt with this assessment at the beginning of fiscal 2019 and agreed with this opinion. However, last fiscal year, it became apparent as this could only be considered a snapshot. Against the backdrop of the expected regulatory novelties in the field of executive board compensation. The Supervisory Board followed the developments concerning the law on the implementation of the 2nd shareholder rights guideline, which is referred to as ARROC 2 and the new version of the German corporate governance code, ARROC 2 requires that the compensation system for the executive board be submitted to the AGM for the first time in 2021 We discussed the voluntary early submission at today's AGM, but we decided against that because this serious following analysis of regulatory developments and the audit of the Executive Boyd's Compensation System required thereafter on the basis of that would not have been possible in such a short period of time according to the opinion of the Supervisory Board. It wasn't until the end of May 2019 that there was clarity about the code's new requirements. The announcement of ARROC 2 in the German law Chronicle did not happen until the middle of December 2019. And on the finishing straight, there were major changes to the draft law. Now that clarity has been established with respect to the new regulatory requirements, the supervisory board of course of 2020 will make the necessary adjustments to the Executive Board's Compensation System and present a revised executive board compensation system to the 2021 AGM for approval details on the executive board compensation, in particular, in the in the 2019 fiscal year, and the emoluments paid can be gleaned from the compensation report in the annual report. Now 2 more corporate governance issues. In the statement of compliance of November 2018, the executive and supervisory boards indiviation from item 532 paragraph 3 sentence 3 of the German corporate governance code declared that the supervisory board's chairman should not be the chairman of the Audit Committee. This deviation was due to the fact that the Chairman of the Investment Finance And Audit Committee Doctor. Sooner was also chairman of the Supervisory Board. After I was appointed Chairman of the Supervisory Board, this deviation ceased to exist and consequence, the statement of the statement of compliance was adjusted, to the the status quo back then, which continues to persist. This was done in August 2019 according to the current statement of compliance of November 2019. Therefore, all of the recommendations of the German corporate governance code were followed, and we intend to do so in the future as well. Without exception. The Supervisory Board subjects its work to an efficiency audit every year. Since the audit in fiscal 2017 was carried out with the support of an external independent consultancy firm, the Supervisory Board in the last fiscal year 2019 also subjected its work to an efficiency audit, but did this on the basis of a structured questionnaire, as was done in 2018, the audit resulted in a positive picture of the activity of the Supervisory Board and its cooperation with the Executive Board throughout. There were no major deficiencies identified. Ladies and gentlemen, this brings me to the financial statements of the parent company and the group, the Investment Finance And Audit Committee and the plenary session of the Supervisory Board discussed the financial statements of the parent company and the group of Infineon Technologies AG and the reports of the independent auditors KPMG in detail. The independent auditors issued an unqualified audit opinion to the parent company and group financial statements. The Supervisory Board approved the result of the audit of KPMG in its meeting of 22 November 2019 We didn't have any objections to the financial statements or to the audit conducted by the independent auditors. And we thus adopted the parent company and group financial statements for 2019. As mentioned earlier, the 2019 financial statements of the parent company are thus adopted The Supervisory Board also concurs with the proposal for the appropriation of distributable profit of the Executive Board, the Executive And Supervisory Board, thus proposed to the AGM that a dividend of be paid, which is the same as in the previous year. The Investment Finance And Audit Committee and the plenary session of the Supervisory Board, furthermore, discussed the separate non financial report and group report as of the 30th September, 2019, for the past fiscal year, which was prepared by the Executive Board KPMG conducted an audit of these reports under the proviso of providing limited assurance and also issued an unqualified auditors opinion on this the documents were reviewed by the Investment Finance And Audit Committee and by the clean recession of the Supervisory Board, the Supervisory Board, has approved and taken cognizance of a separate non financial report and the group report. Ladies and gentlemen, At the end of my commentary, I would like to make some remarks with respect to the future composition of the Supervisory Board and the Supervisory Board elections that will take place under item 6 of the agenda. At the end of today's AGM, the tenure of all shareholder representatives and of 6 of the 8 shareholder representatives will end Correction, it's a tenure of all of the employee representatives that will end. Only Mrs. Spicot has been elected through to 2022 and my own mandate will expire at the AGM in 2023. Last December, the 8 employee representatives were reelected and they will take office right after today's AGM. These are the Infineon Employees, Doctor. Johan Deschamps, Doctor. Susane Lachamman, Mrs. Melanie Reebel, Mrs. Kirsten Schulzendorf, and Mrs. Diana Vitale, as representatives of the labor unions in the future, and let's say Engel Fried and Mr. Jurgen Scholz will be members of the supervised report. They are both from the metal workers, trade union and Mr. Gruber as a representative of the executives. 7 of the 8 employee representatives that have been newly elected already belonged to the supervisory board until just recently. I would like to express my sincere gratitude to them and to you, my colleagues for, the years of good cooperation. I'm looking forward to many years of continued success. Mrs. Readle is new, she is a trained engineer and has been working for Infineon for a number of years already. Mrs. Rita, welcome to the Supervisory Board. Mr. Gerhard Hoback will leave the Supervisory Board as a employee representative He joined the Supervisory Board in 2007 and has therefore been of great service to the company, over years. Mr. Hobak, thank you so much for your dedication As mentioned earlier, today, 6 of the 8 shareholder mandates has to be restocked. The supervisory board proposes following a comprehensive and complex staffing process, the following candidates. Who shall now be listed in alphabetical order, Mrs. Seacin Kleva, Doctor. Friedrich Eikengla, Hans Ulrich Holndreid, Doctor. Manfred Puffer, Doctor. Ulrich Psofa, and Mrs. Margaret Sukale. I would like to give you some brief insight into the nomination procedure at this point. From September 2018, the nomination committee has been concerning itself with the staffing of the supervisory board mandates that would become vacant in 2020. The basis for this were the statutory regulations, the recommendations of the German corporate governance code and are skills profile and the target catalog for the composition of the Supervisory Board. However, the expectations of our investors were also taken into account the nomination committee on this basis put together a pool of candidates. And in so doing, it also availed itself of the services of an external consultancy firm after following the evaluation of the references, a short list was, drawn up and personal talks were held with the candidates, the nomination combination committee recommended to the Supervisory Board that Mrs. Kleeva, Doctor. Ijina, Mr. Holdenried, Mr. Puffer, Doctor. Espyshoefer and Ms. Sukare, be proposed for election to the AGM. And with respect to Mr. Hollenried and Doctor. Puffer, it requested that their tenders be extended. With respect to the 4 new candidates, The Supervisory Board is absolutely convinced that Mrs. Cleaver, Doctor. Ihinger, Doctor. Spiesofer and Mrs. Sukale are extremely qualified, have outstanding experience and should therefore be put up for election. Ms. Cliva has years of experience on an international level in responsible in the field of software engineering, IT and digitization, and she has also gained experience on supervised reports. Doctor. Aikna is also very qualified, not least due to his years of experience as CFO at BMW And Chairman of the Audit Committee at Allianz one of the leading international, and therefore, is one of the leading international, experts with respect to the standards. Doctor. Pis Hoefer as a former business consultant and long term CEO of the globally active Technology Group ABB has outstanding industrial competency especially in the power sector, which is so important to Infineon. Last but not least, Mrs. Sukale, will contribute to years of experience as a member of the Board of Management of BASF and Deutsche Bank as well as extensive knowledge of supervisory boards and personal and legal competencies. Now I would like to afford the 4 new candidates, the opportunity to come to the stage and introduce themselves personally. Mrs. Cleaver, would you perhaps get started and approach the Rostrum. So, good morning, ladies and gentlemen. I am Sachin Kievan, I was born in China. I studied IT And Computer Science in China and Germany, and I took my MBA in the United States. For more than 20 years, I have been active in the field of software engineering technology development and digital transformation in various international companies. These include 13 years in senior positions of the management. And as a member, of the management and supervisory boards or advisory boards. It was my privilege during my professional career to work in different countries. Germany, United States, China, India, and Switzerland. In the last few years, as Chief Technology And Data Officer, It was my pleasure to accompany the media industry through the digital change. Is an industry, which is facing players like Google, Amazon and the Chinese players such as Biden's and has become really disruptive. What can I do for Infineon? As a globally important provider of Semiconductor solutions, Infineon in the last few years, has expanded its product portfolio with unique software and hardware components. And this has set it on the right way to a comprehensive provider of system solutions. I hope and wish that with my expertise in software development and technology like cloud, big data, artificial intelligence, age Computing And Platform Engineering that I will be able to make a contribution to the future of Infineon. In addition, with my multicultural background and my network of international digital community, I hope that I can provide a supportive role for the further development of the global business of your company. I delighted to be able to introduce myself in personal Thank you. Mrs. Klaver, Doctor. Aykina, please. Shareholders, ladies and gentlemen, I'm glad to be able to introduce myself briefly as well. My name is Riti Aikina, I'm sixty four years old after studying business management and doing a doctorate at the University of Munich in I, in 1987, joined BMW, which is a long time ago. In the 1st few years, working in the field of logistics and production, in particular, where I took on management roles, including IT roles and in 1999, I changed to sales, where I was important for factory management Then I moved on to group planning, was responsible for the group strategy of the BMW Group. This was a task, which I performed until 2007, and then in 2007, I moved to the board of BMW AG where my first role was to head a division for the brand development. And in 2008, I became CFO of BMW AG. I think that that was also an interesting period and it was the time of the financial and economic crisis. At present, I am exercising 2 important Supervisory Board tasks, 1 at Allianz SE, our Head of the Audit Committee, and a Monster Chairman, the Supervisory Board of the A Festo Group. Now of course, the question arises, what can I contribute Well, I think long experienced in automotive, and on the other hand, all so an insight into automation technology, this can help me to assess technological developments? And from the insurance industry, I bring not just knowledge on accounting and classic financial issues, but also risk management I'm a member of the Risk Committee of Allianz SE, and I think that in these days, it's an important issue for an industrial enterprise. Thank you, Doctor. Ijina. Now I'd like to ask Doctor. Shabizhofer to introduce himself briefly. Leberak Tener. Shareholders. Thank you very much for giving us opportunity to introduce myself to you today. Mine is not a police officer. I'm fifty five years old, married with 2 adult sons, after school, I was trained as a tank fitter with the German army and then started engineering and Business Management University of Stuttgart, followed by a doctorate in Economic Sciences. My professional career can be divided into 2 phases. The 1st phase, I was working in professional service and the field of corporate consultancy, it was an interesting time to understand and to shape companies in these industries, region, cultures and how they can be advanced. The 1st 11 years of the economy as a consultant in Europe and then in management decisions in Australia and Asia. In 2001, I came back to Europe, To Switzerland, as the personnel responsible for the European Management team, in 2002, I became a consultant myself. And part of the shares of Rondebelle, Berga, consultants I bought on a became a senior partner and head of global operations. In my time in Switzerland, I had contact with ABB. And in 2005, I was offered a post on the group board at ABB, First of all, with a portfolio of functional responsiveness strategy to supply chain and quality management, And in 2009, the robotics division and the new formed for automatic drives I took over, I updated the robotics side and turned into technological leader and in drive technology with acquisition of other electrics in USA, we took over market leadership in this area. 23, I became CEO, I was able to continue to lead the change of ABU from a copper iron and orientated company to a technology company, which is leading in the digital industry. And I am delighted at the end of my time, I have just resigned, and there are 5 divisions, ABB, where we are either 1 or 2 in the world. What can I offer? I've got this enthusiasm technology. And I also had contact with Infineon during my time at ABB, where we were an important partner. I can also work in different cultures, yes, in the Strategy Committee, we were looking at the subject of integration of acquisitions in China and electromobility. And I've moved in all these fields shareholders, you've got a great company that belongs to you, and I hope that I can make a small contribution with my experience to continuing Thank you, Doctor. Spis Hoefer. And now still keeping with the alphabetical order, I would now like to ask Mrs. Sukhale to introduce yourself briefly. Sergei, shareholders, ladies and gentlemen. My name is Margaret Soukale. I was born in Hamburg, where I also studied, I took my first and second state examination in law, then I began at Mobile Oil AG in Hamburg. And then I set out to see the world I was in many of the European sites of mobile oil, normally as the legal official and also in HR. And then in 1997, I moved to the German railways, which was very interesting because German railways is supposed to be launched on the Stock Exchange. And we have a legal sector there that I was responsible for. There were many organizational changes at Deutsche Bank in that time, There wasn't a Stock Exchange launch because of the financial crisis. And then in 2009, I took another big step and moved to BASF in Ludwig's office. The biggest chemical company in the world. I was appointed to a member of the board, I'm responsible for the sites, the European sites to begin with, engineering maintenance, environment. That's very important for a chemical company course, work, health and safety, and also for the HR sector. Then in 2017, I retired and divided my time up between onry posts and also memberships of Supervisory boards at Heidelbergcement Deutsche Telekom, and DBWS. I have seen quite a lot in the course of my life, and I am very inquisitive. I find it a great honor, and I'll be very happy if you would vote for me so that I can help a major company like Infineon. I think from what I have done in the past, it becomes clear what I can contribute here in future? This question of sustainability, ESG is an important issue There are 2, I was just wanted to BASF, where I was on the Sustainability Council that I headed and then also questions of the social partnership, areas where I have gathered some experience in the course of time. Perhaps one comment about my private life, I'm more consistently. I've been married for almost 40 years now. Thank you. Thank you, This rounds up the commentary on the future of the supervisory board. Now I would like to make a brief retrospective. And to be quite honest, Only rarely have I experienced a supervisory board that has been so demanding as it has been supportive of the executive board and the company in its function. The shareholder representatives who'll believe in the supervisor board are Peter Bawa, Herbatis, Mrs. Renata Kresha, and Mr. Ekhart Zunar Lieber, my dear colleagues, with great dedication, with great professionalismality, and providing important stimulus, you have all contributed to transforming Infineon into one of the world's leading semiconductor producers, Peter Bauer. After your years and successful time as member of the it's member and chairman of the Executive Board. You have basically gone into over time by accepting your office on the supervisory board for our company for your Infineon. Thank you so much for that. And I think I'm speaking on behalf of many, if I say that we would have loved to have kept you with us for longer, but of course, we understand the reasons for your resignation. Herbert Dies, Bietchatspoche, a while ago named you Mr. Elektra of the Global Auto Industry, Monsieur 100,000 volts is a more fitting name in my mind, but I think that that name has already been given away to someone else. Thank you so much for more than 5 years of very valuable work, not only in the field of electric mobility, but also far beyond that We would also have loved to have kept you with us longer, but that's a different story. And I hope that you don't sever your ties to This is Keisha. 15 years on the Supervisory Board of Infineon, you've gone through thick and thin with our company. Over the years. And it is, therefore, with, a TRI, that I have to bid you farewell, but of course, 1st and foremost, I would like to express my sincere gratitude to you for your decades of highly professional work on the supervisory board. And unfortunately, governance stands in the way of you are serving us even longer. Thank you so much. My dear Eckhartzina. A similar number of years connected to Infineon as do Mrs. On top as chairman of the audit committee and not least as chairman of the supervisory board for one and a half years in an era during which trailblazing strategic decisions were made by the Supervisory Board. Let's just think of the expansion at Filach and the acquisition of Cyprus. Thank you very much for your dedication, Lord loyalty, and also a very big personal thank you. Ladies and gentlemen, If you allow, I would like to make some concluding remarks with respect to today's Supervisory Board elections. I am especially pleased that together with the employee representatives in the future, we will have a women quota of 50% and that the internationality of the supervisory board continues to increase. As a result, the composition of the Infineon Supervisory Board, is meeting diversity requirements as part of our sustainability mindset. And this is another reason why I ask you to support our proposed candidates. This brings me to the end of my report. However, I wouldn't want to close without expressing further gratitude, first of all, I would like to express my sincere gratitude to our highly dedicated employees for their outstanding commitment wherever they may be in the world and the outstanding performance that they have displayed in many respect in a very challenging I would also like to thank the members of the executive board and my fellow Supervisory Board members for their professional and trusting and appreciative Corporation. And last but not least, I would like to express my sincere gratitude to you, my dear shareholders, for your persistent loyalty Ladies and gentlemen, I would now like to hand the floor to the Chairman of the Executive Board, Mr. Ploss, for his report on Shareholders and viewers watching the world broadcast. Ladies and gentlemen, Infineon shapes the future. We are paving the way to sustainable and safe mobility. We're helping to supply the growing world population with energy from wind and sun. We have the technologies that make the internet of things smart fast and secure. Together, our customers, we are shaping the world at tomorrow and a future worth living for all of us. Welcome to the Annual General Meeting of Infineon. The 2019 fiscal year was turbulent for Infineon and for the entire global economy. It began with a flying start. Everything pointed to continued strong growth. In particular, the market for power semiconductors was in a real boom phase. In some products, we were unable to meet demand of their existing production capacities in any way. And it was clear to us that this phase would come to an end potential risks, running from increasing capital tensions and intensifying trade conflicts, and we were aware of it at that time already. From January 2019 onwards, the economic outlook deteriorated very quickly. In our end markets, demand declined noticeably. We had to adjust quickly to a completely different situation. With markets that were growing significantly more slowly, in some cases, not growing at all. For a semiconductor company, this change is particularly challenging, because the throughput times in manufacture are quite long consequently, it takes time to adjust to a lower level Delivery capability is a factor of success for Infineon. Our customers appreciate our reliability. 2 cautious capacity planning will sooner or later lead to allocation. And then you cannot take advantage of market opportunities when they arise in an swing and to lose customers. We, therefore, deliberately prepared for further strong growth and expanded our production capacities which in some cases requires This means that we have to manage underutilization. Experience, however, shows that over capacities are usually replenished after only a few quarters, even if the markets develop weekly. The strategy is therefore clear. Provide capacities with a sense of proportion and manage under utilization when it occurs. The bottom line for the 2019 fiscal year is now 1000000000, an increase of 6%. The segment result margin was 16.4%. Despite a challenging macroeconomic environment, In a shrinking Semiconductor market, Infineon has continued to grow, and that's a 6th year in succession. This shows that our business model is robust. Infineon grows even in difficult times. For the first time in the company's history, we exceeded the revenue mark of 1,000,000,000 given the conditions of fiscal 2019, 2019, we are satisfied with this result. On behalf of the Management Board, I should like to thank all the employees for their contribution. The fact that Infineon has mastered this challenging situation so successfully is due not least You, shareholders. We want you to have a fair share of our success. Since the 2010 fiscal year, Infineon has almost tripled its dividend payments in several steps from initially per share to last year. For the 2019 fiscal year, we proposed an unchanged dividend of per share. The new shares issued in June 2019 as part of the capital increase are fully entitled to dividends here. As a result of the approximately 10% larger number of shares, the dividend payout will increase from 1000000 to 1000000. So much for the past fiscal year. Now in the middle of the second quarter of fiscal 2020, we are seeing the first signs of stabilization in the market. This confirms our assessment. In the past few months, we have held our ground and we are now preparing for the upturn. Over Christmas New Year, we'd initially planned a 2 week holiday break in our fabs in Cullum, Addresden. However, due to better short term demand for certain technologies, unchanged. When the market picks up, Infineon will be ready. Currently, We continue to assume When we look at the target markets of our 4 divisions, we see a mixed picture. The long term growth drivers, however, are generally intact. In the Automotive division, we are benefiting to a lesser extent from the growth in unit numbers in the global car production. The long term average is around 2% per year. At present, however, it's declining. What is much more important to us with an average of about 6% growth contribution per year is the increasing share of cases are still a technological change in favor of Semiconductor based solutions. Examples are LED Headlight better light with lower power consumption. On the other hand, the 2 megatrends, electromobility, and advanced driver system system systems are creating an ever greater demand for semiconductors. At present, however, in Electrolux Mobility, we're feeling the effects of the weakness for Chinese market, which, in 2019, collapsed unexpectedly. However, there are signs of stabilization. The fact that subsidies will not drop further in 2020 will certainly help. However, inventories are still high and it would take time before any significant growth impulses reach us again. In Europe, manufacturers were actually forced to increase the share of electric vehicles in their fleets in order to meet emission targets. Since this year, new cars have been subject to the stricter limit of 95 grams of carbon dioxide per kilometer on average. We've already taken this effect into account in our planning. Given the current demand for the market launch of new models in second half of the year, the effects will be felt. In the medium, long term, electro mobility is a key structural growth driver for Infineon. That's shown by the fact that in the meantime, We now represented more than 35 models of plug in hybrids and fully electric vehicles, that will go into production by the end of 2021. One example is now going to cease production can be seen in an exhibition for you today It is Volkswagen's ID 3, the first vehicle based on the MEB platform of the VW Group. Depending on the selected battery capacity, a range of up to 5 50 kilometers, 3:30 miles is possible. With 100 kilowatts of charging power, you can recharge about 300 kilometers, two hundred miles of range in just 30 minutes. In the basic version, it costs less than. These key data make it clear. Electromability, is becoming suitable for the mass market. The 2nd major growth driver is the trend towards more and more advanced driver assistance systems up to automated driving. With our comprehensive portfolio, we are in an excellent position to take advantage of The industrial power control division addresses very different markets with its power semiconductors. The fields of application include wind, power and photovoltaic plants, systems for energy storage and high voltage direct current transmission, trains, industrial drives and major domestic appliances. Many of these markets allow long term structural growth for us. The submarkets typically behave differently. Factory Automation, for example, is a classic late cycle business. There, at present, we are observing stabilization. However, stocks, first of all, have to be further depleted before things can start to improve again. In the case of trains and power transmission, on the other hand, demand is good. The expansion of renewable energies is also progressing. And by the way, These are among the 1st fields of application for power system adapters that have adopted silicon carbide, and I'll come back to that in a moment. In our target markets of power management partner market, we are also seeing some positive signals in the meantime. The so called multi source business, the smaller customers, which was also the first to feel the effects of the slowdown, has bottomed out. Here and in some other areas, inventories in the supply chain have returned to normal levels. The server market is beginning to recover. Because of the increasing complexity of server architectures, course, among other things, by data centers for artificial intelligence, the demand for special power supply solutions is also growing. At present, demand for our silicon microphones is very strong. They have excellent acoustic properties, The strong growth is the result are used not only in mobile phones, but more and more. Also, for example, in voice controlled assistance, or headphones with noise cancellation. Secondly, the markets for these devices are growing. Thirdly, more and more microphones being used by device, a set of headphones, for example, contains up to 6 of them. Fourthly, because of the outstanding characteristics of our microphones, we are gaining market share. And now we've got one of these microphones. It's very small by nature. Here, you can see the microphone. The round part is where the sound goes in, the dots next to it are where the electrical signals come out. Next slide, you see the chip itself and the rear of the housing. It's fascinating to see how much can be packed into this small chip. You can see in the picture, a membrane, which oscillates with acoustics, waves reach it. And there is a very broad range of soft to very loud sounds, are possible, including transmissions in rock concerts. We've got virtually studio quality. We are very proud of this technology. And it is the success that is there which differentiates us performance, Infineon needs a space of 1.44 Square Millimeters to achieve this superior performance. As you've seen, the latest generation was shown on my hand and on the screen. And I've said the microphone of membrane evaporates and tiny housing as properties determine how precisely the sand is captured in the surrounding area. As end users, we notice this in the form of a clear sound when we make a phone call. And reliable, almost complete cancellation of unwanted ambient noise. What you don't see is the enormous technology and the know how that it involves. Great technology can be fascinating, but success is shown by the market. For the current fiscal year, with microphones, we have set growth of almost 50% compared to the previous year. This will increase our revenue to around Yes. It is great. I must say. And quite honestly, At the end of the day, it is knowledge that is able to differentiate. We can manufacture that so much so many mechanical parts, and you couldn't imagine, but back to business. Look at the situation and divisions, is completed by the Digital Security Solutions division. Security Solutions are another core competence of Infineon. In an increasingly connected world and especially in the air of the internet of things, we are a sought after partner In the past few months, we have gained further projects in application areas, such as smart meters, cloud and battery authentication, and the security expertise of DSS also benefits us in all other business areas. Robust security solutions are needed almost everywhere for the connected car for industrial robots for mobile communication and for many other applications. Here too, in view of global trends, we can see interesting growth possibilities for Infineon. As you can see, we are well on track, but there are still some challenges to Master. We are well prepared for so in terms of numbers for individual quarters of fiscal years. Infineon's real quality is to develop stainable competitive advantages and create lasting value. We did this last year as well. Even though the present has already demanded a great deal of attention. As a company, we have to manage the day to day business and economic cycle. We must not have her make a mistake of permanently giving higher priority to today rather than to tomorrow. A missed business opportunity could never be as damaging to the company as a missed fundamental change, of course. That is why it's important, even in such hectic times as these, to keep an eye on what will bring success in the future for us. Many people talk about continuous change. We live it. When we enter the market today with an innovative technology and to generate the 1st euro of revenue, we have all already put in many years of development work both in the product and necessary production processes. We have expanded our production network, which makes a major contribution to our differentiation and we've developed over years, keeping it at the cutting edge of technology because today's success was what we achieved On the basis of yesterday's work and what we do today contributes to tomorrow's success. The planned acquisition of Cyprus is also an important step in Infineon's evolution. For many years now, we've been working with great success on continuing expanding our system competence in the various markets. With Cyprus, We shall be able to continue making ever faster progress in this respect. The acquisition is the biggest transformation in our company's history. It's a challenge for all of us, but we are confident we can management and manage it and I'll explain why. For a good 20 years now, Infineon has been an independent company. Before that, we're part of a large conglomerate. Our main task was above all to develop and manufacture those semiconductors that were needed by the other divisions. The target application was known. Market knowledge was of secondary importance and nobody at that time thought of system solutions. All the internal Hamas himself knew best what was needed. Why do I mention this? Well, Infineon in those days, cannot be compared with today's Infineon. The semiconductor industry is characterized by continuous change Enema has not set the course in time, will end up in a dead end. The best recipe for sustainable success is to shape change actively. That is exactly what we do. The example of power Semiconductors makes it clear how much Infineon's success full concept has changed over the years, how much it has had to change in order for us to stay ahead. Energy Efficiency and the use of renewable energy sources have always been core elements of our strategy. As the undisputed market leader in power semiconductors, we play a key role because we have helped shape the market ourselves. For a long time, the focus in power semiconductors was on using technological progress to reduce losses and cut costs on a component level. That was very successful, and it's still valid. Infineon has succeeded better than its competitors, in continuously optimizing the various parameters, but that alone is no longer sufficient today. The technologies are coming closer and closer to their physical limits, and the effort to make further improvements is increasing enormously. That is why it is important today to find new ways to increase efficiency. This is where It pays off to master not only the product, but also to understand the system in which it is used. Because in the interaction of the individual components, especially between switches, control ICs and the passive components, there is a great deal of potential optimization at system level creates completely new products. This may also include new materials. Silicon Carbides and gallium nitride have superior physical properties compared to silicone. But they're more expensive and they're more difficult to process. Only if you exceed in justifying the higher costs by better performance of same costs elsewhere, Will it be possibly to be successful with new materials? Silicon Carbide, for example, enables complete new solutions and we work very closely together with our customers to get the best out of this technology. In the 4 year, you can see a fault of a converter from the Keiko company. The blue plamet-one hundred and twenty five was developed for decentralized photovoltaic power plants. Thanks to Infineon's CoolSIC technology, which is very compact and highly efficient. With a nominal output of 125 kilowatts, it weighs less than 80 kilos. The maximum efficiency is an impressive 99.2%. The great progress can also be seen in the development you can't look in. Look at the booth. Our colleagues are looking forward to meeting you. As the world market leading power semiconductors, we master entire range and can offer our custom laser exactly what they need for their specific application. Leading Base Technology, a comprehensive portfolio covering all voltage classes and form factors suitable components for power control, system understanding and innovative products based on new materials. But as you can clearly see, even in our core markets, we cannot rest on our laurels. What was successful yesterday may be outdated tomorrow. And that is why at Infineon, we are continuously developing further. This is the only way to We automatically set standards for the entire market. With Cyprus, we shall strengthen our core business of powersemiconductors and sensors and security controllers. This will enable us to serve an even wider range of applications and offer customers complete solutions. That underpins our potential for differentiation and growth Cyprus has a comprehensive portfolio of microcontrollers and connectivity components as well as the corresponding software. Together, we are in an even better position to connect We are ready, and we're looking forward to welcome our new colleagues into the Infineon family soon. At present, approvals from 2 authorities are still pending with CFIUS in the U. S. And Sema in China, we are engaged in productive talks. As things stand today, we expect to be able to close that acquisition or end of this quarter or at the beginning of the next quarter. The acquisition will also help us to leverage the digital transformation for Infineon. Demographic change suggestive resource and urbanization are global megatrends that pose major challenges for mankind. Digital transformation is part of the solution on the one hand, but on the other hand, it is also a challenge in its own right. With that, chips, it's not even conceivable. In many areas of today's life, life electronics is used quite naturally. It's the base of automation and higher productivity in industry. It makes everyday life more convenient in many situations. It helps us to use energy more efficiently and thus to save resources. Digital Transformation is the next level of this development, but its effect will be far greater It's closely linked to the internet of things. Thanks to modern sensor technologies, electronic systems, can in the meantime catch a wide range of environmental data, microcontrollers process the data and to generate control signals. By connecting the systems and intelligently linking the rate of other cloud, use cases are created that significantly exceed those of the local singular solution. Precondition of this, however, is that the appropriate security mechanisms protect the integrity of the devices and information. What does this mean for Infineon? Digital transformation is not only changing the way we work. And that, at every stage of the value chain, It affects the lives of everybody. It influences each of our target markets and consequent also changes the needs of our customers. And we want to benefit from that. We don't have a separate utilization strategy for this that would be the wrong approach Digitalization must be an integral element of our corporate strategy because in real life, too, it doesn't just affect the large computers and data centers, rather it takes place on all levels. A simple example, The greenhouse of the future uses LEDs as a light source, and it supplies itself electricity from solar cells, and calculates the water requirements of plants precisely as different and varied as a fields of application are the Semiconductors that are needed for that. With our broad portfolio, we have the right technological base to help our customers achieve this. This way, we ensure that digitalization serves people. We ensure that trustworthiness of the data used, We provide a reliable and a fast connection to the cloud. With our sensors, the cooperation between man and machine becomes an intuitive experience. And our power semiconductors supply the connected things with electricity, reliably and efficiently. Even today, Infineon has many technologies that are used in this field for the future, which enable it to be a very successful player. The acquisition of Cyprus will strengthen us significantly. The success of the digital transformation is not just depend on technological progress, however, politics is called upon as well to create the right framework, the fields of action are extremely varied. So let us walk together along this path into the future This includes rules, but standing still and waiting is not an option. We want to be the future. We want to shape it. Earlier on, I was talking about power Semiconductors. They have been a central pillar of our growth strategy for more than 20 years. Electrical Energy is the life Alexia of modern society. The power grid is their circulatory system, and power Semiconductors provide the right circulation. Without it, the world as we know it would stand still. Even the automotive industry is not immune to electrification. In generating, transmitting, storing and using electrical energy, are needed. Energy Efficiency is a global trend and an important growth driver for our business. And that is exactly why we are presently building a new 300 millimeter factory in filler. Our products help to conserve resources and to make use of renewable energy sources. In this way, Infineas make a contribution to a future worth living in. Every year, we calculate how much carbon dioxide equivalents we emit as a company and how much our products This means that Infineon enables savings that are 40 times higher than our emissions. Our employers, all over the world, are very proud of this, and so are we on the management board? You might object: Infineon will benefit if more electrical devices or more cars are produced. That's correct. But without us, there wouldn't be fewer cars or service or air conditioning systems, they've just been much less efficient. We are convinced that you can only change things if you actively participate. Shaping begins with participating. It's not enough to condemn the need for mobility For many people, it's the basis of their professional and private existence. We also need to understand that especially in emerging markets, many people want to have as good a life as we already have here. Many will not accept a call for restriction and renunciation. That is why we need the approach that Infineon stands for. We want And at the same time, we're working on offering better solutions for the future. The light bulb was also invented and room lit by candles. Finding better solutions is what drives us on at Infineon. We want to make a difference and there are many possibilities. Climate change is threatening the global ecosystem and thus the very basis of human life. This insight is not new. Nevertheless, much valuable time has passed. Young people such as the activists or Fridays for Future have ensured that climate change is once again receiving the much needed public attention. Exactly 18 months ago today on 20th August, 2018, Greater Thunberg, stood with a banner in front of the Swedish parliament in Stockholm for the first time, and demonstrated for better climate production. I find that great. I'm happy when I see young people getting involved and pursuing things with passion and perseverance. And I'm impressed, Bardgeta Thunberg, and the whole movement have achieved in such a short time. They have reminded all of us that we can do more. Indeed, we must do more. And they have led many people and organizations to question critically their own carbon footprint and to ask whether their priorities are right. The president of the EU Commission, Ursula Von Der Leyen, is making climate correction, a central theme of her term of office with the European Green Deal. More and more companies investors are taking a critical look at the effects of their actions on the environment. The World Economic Forum in Davos in 2020 was also marked for the first time by the climate crisis. And now let's make clear not just in the speech by the German Federal Chancellor. These examples show that necessity has been recognized but analysis and demands are not enough. Now it's a question of acting. For this, we must show ways it will take us forward on a global basis. Infineon is already doing a great deal. I'll just explain the net benefits of our products. In addition, we also pay attention to our use of resources per square centimeter of processed wafer area, Infineon uses 32% less water, 52% less electricity and generates 65% less waste than the global average of Semiconductor Companies organized in the World Semiconductor Council. But we know as well that we can do more. Just that we're always looking for new ways to improve on the product and system side, we also want to work towards reducing or even complete the avoiding carbon dioxide emissions in production. For this reason, we are setting ourselves binding reduction targets for the first time as a company. By the end of 2030, we wanted to be CO2 neutral. Our primary goal is to avoid emissions from production and energy supply, but we're not going to leave it at a long term goal in tenure By 2025 already, we want to have implemented 70% of the necessary steps. Starting from the basis of by PFC exhaust air purification in the plants with reduction measures of this kind, we are doing far more than required by law to reduce greenhouse gases. We intend to offset the remaining emissions by per in green electricity and, to a lesser extent, by purchasing certificates and support development projects with environmental and social benefits. The targets apply to our own footprint and includes all direct emissions and also indirect emissions from electricity and heat. To the outside world, there are promise by which we want to be measured Internally, there are motivation for ourselves to give our efforts an even greater boost. We are happy that our employees As you can see, your company is in perfect health. We have mastered the challenges of last year well. We are addressing long term social trends that will enable us to grow faster than the market in the years to come. We are about to complete the biggest acquisition in the company's history. We stand by our social responsibility and we are not resting There is still disagreement on trade issues at the international level. This continues to be a source of conflict. We, therefore, do not expect macroeconomic impulses and a significant market recovery driven by them in the short term. Nevertheless, our markets are increasingly developing in the right direction again. We are monitoring the effects of the coronavirus very closely. Our top priority is the health of our employees. We've already taken appropriate precautions to protect them. The economic consequences for China and the rest of the world cannot yet be fully assessed For the automotive market, market researchers expect production losses of 1,000,000 vehicles in China alone. That is the equivalent of a good 1% of annual global production. However, a catch up effect cannot be ruled out in the coming months. The number of smartphones could also fall by good 2 percentage scope on to analysts. So far, both on the customer and supplier side, we've only seen little impairment of our business. As of today, it's not possible to make a reliable forecast about the effects of the virus on the global economy, China and Infineon. We are therefore maintaining our outlook for the current fiscal year. And to remind you, we expect revenue growth of 5% plus some one's two percentage points and a segment result margin of 16% at the midpoint of this range. This outlook is based on an assumed US6 dollar exchange rate of 1.13 to the euro. It does not include the planned Cyprus acquisition. My colleague, Sven Schneider, will go into more detail on the outlook in his speech. You remember a year ago, from this platform, I said farewell to Dominic Asam as Chief Financial Officer. Sven succeeded in May 1, 2019, and he had ample opportunity to prove his abilities from the very beginning. With the largest acquisition in the company's history, there was little time to go from 0 to 60. The professionalism with which he and his team planned and implemented the refinancing measures in the course of the Cyprus acquisition is, among other things, impressive. Svenn, we are happy that you're now at Infineon and are part of our team on the management board. There will also be changes on the Supervisory Board. At the end of today's Annual Meeting, Doctor. Sooner, Mr. Bauer, Doctor. Deese, Mr. Hobak and Professor Kosia are leaving the board. On behalf of the entire management board, I'd like to thank all of you very much for your many years of support, your trust, and our constructive cooperation. I wish you or we wish you all the best. I should like to thank the future members of the Super Vibod advance for their interest in joining Infineon. Last but not least, what would Infineon be without its shareholders? Thank you to you too, ladies and gentlemen, your trust gives us the strength and confidence we need to work in turbulent times like these on the long term development in Finian. Thank you. Field Dank. Thank you, Doctor. Ploss. Ladies and gentlemen, products are based on advance in knowledge, in physics and chemistry, but our success, I think, is also based on our heart blood and the CEO is the best proof that that is true. But heart blood is also needed. In a stable financial structure, and Doctor. Svenngein is going to talk to you about that. As announced by Mr. Ploss. Thank you very much, Mr. Ira, for the motivating and appreciative words, which are really touching. And also many thanks to you, dear Ryan had for your warm words. In my 1st 10 months at Infineon, were very intense. I am new to the company. I was new to the sector. And, I took a deep dive right away. I was welcomed with open arms and quickly felt as a part of the team. In fact, Already by now, I feel as if I have been working at Infineon for years. At this point, I would like to thank the Supervisory Board my colleagues on the management board and our employees for their excellent cooperation and for the wonderful support I've experienced in the last couple of months, I have taken over a well kept organization and a highly professional finance team. Ladies and gentlemen, good morning. Infineon grew again in the 2019 fiscal year, albeit at a much slower pace than originally expected. However, you have to put that into perspective. Despite a challenging macroeconomic environment and against the trend, of an overall shrinking compared to the previous year, it rose by 6 percent to 1,000,000,000. As you heard before, and so doing Infineon for the first time in its corporate history achieved revenue of more than 1,000,000,000. The segment result declined by 1,000,000 to a total of 1,319,000,000 by contrast. This corresponds to a segment result margin of 16.4% compared with 17.8% in fiscal 2018. It was thus in line with the forecast adjusted in March 2019 of around 16% at the midpoint of the guided revenue range. This result is remarkable, especially against the backdrop of the challenging macroeconomic environment and the shrinking semiconductor market. At the beginning of the fiscal year, you may recall, we had expected a significantly higher revenue growth, 11% give or take 2 percentage points instead of the 6% we now achieved. At that time, the market was still in a boom phase, during the fiscal year, however, demand in our end markets dropped in some cases sharply. We had to adapt quickly to a new situation with little or indeed no market growth at all. Given the temporary lower demand, which was caused by factoring capacities, especially in the second half of the fiscal year. This cyclical effect led to higher idle costs which had a negative impact of about two percentage points on the segment result margin, the fact that the margin has nevertheless remained so stable, close to our target of 17% on average over the cycle speaks for the robustness of our business model. And it also furnishes proof of the adaptability and speed of our teams They have favorable development of the exchange rate for the U S dollar also had a positive effect. The average rate for the year was 113 compared to 119 in the previous year. So ladies and gentlemen, as you can see, Infineon delivers profitable growth even school year, dropped by 19 percent to 1,000,000. This represents a decrease of 1,000,000 compared to the previous year's figure which had included the pretax gain of 1,000,000 from the sale of the RF Power Business. Our earnings per share amounted down 21% compared to the previous year. Adjusted earnings per share fell from to This brings us to my Revenue in the Automotive And Industrial Power Control segments grew by 7% in each case, and by 5% in the power management and multi market segment. The Digital Security Solutions segment posted a 3% decrease in revenue in a weak market environment. Nevertheless, according to the most recently available market analyses, Infineon has been able to keep its market share stable. Segment result margins developed as follows: Automotive dropped from 14.2 to 11.5%. Industrial Power Control dropped from 19.3% to 17.7% Digital Security Solutions dropped from 15.8% to 12%. Idle costs were one main reason for the decline in these segments, as I mentioned earlier. Given the temporarily lower demand from our customers, we were unable to fully utilize our increased production capacities, especially in the second half of the fiscal year. In the power management and multi market segment, however, we were able to achieve growth in the segment result in excess of revenue growth, 1,000,000 represent a 10% increase compared to the previous year. The segment result margin was thus a strong 23.9 percent. Let us look at the distribution of revenue by region. In China alone, we generated 1,000,000 of revenue, which is 27% of our total revenue Germany accounted for a share of 15 percent with 1,169,000,000. The USA accounts for 11% of revenue. Here, Infineon achieved the highest percentage revenue growth of 20%. Also in Japan, Infineon realized a remarkable revenue increase of 11%. Although as you see, Japan accounts only for 7% of group revenue, we are pleased with this growth. Japan is a particularly large and important market for both automotive and industrial applications, but so far has been dominated by domestic suppliers we see the fact that this region is gradually opening up to us as a clear sign of the competitiveness of our technologies. Now moving on to the operating expenses. Our research and development expenses rose by 1,000,000 to 1,000,000 in the 2019 fiscal year, equivalent to 11.8 percent of revenue, a further million in research and development expenses had to be capitalized in the 2019 fiscal year and thus reported as investments according to the International Financial Reporting Standards in short, IFRS. If you take into account additional subsidies and grants received to the tune of 1,000,000 we invested a gross total of 1,181,000,000 in research and development and thus in the future viability of your company. Selling, general and administrative expenses as a percentage of revenue declined slightly to 10.8% in the 2019 fiscal year. They were 11.2% in the previous year. Free cash flow for a CFO. This is quite an important KPI amounted to 1,000,000 in the reporting year and was thus within the forecast range. The acquisition of Siltectra and payments in connection with the acquisition of Cyprus had a negative impact on free cash flow. And please don't forget that the million from the previous year included the cash inflow from the sale of RFP power to the tune of 1,000,000. By far, the largest share of investments in property, plant and equipment where capital expenditures at our manufacturing sites around 2 thirds of that went to front end, meaning chip manufacturing and the rest mainly to assembly, which we refer to as the back end. At 1,000,000, investments in intangible assets were down on the previous year's figure of 1,000,000. The lion's share of this at 1,000,000 was accounted for by the aforementioned capitalized development costs. Now let's take a look at our balance sheet. As of 30th September, 2019, total assets amounted to 1,000,000,000. This is an increase of 23% compared to the 30th September 2018, our financial liabilities increased only slightly by 1,000,000 total equity increased by 1,187,000,000 to 1,000,000,000. This was primarily due to the which I will present was 12.2% in the 2019 fiscal year compared to 20.5% in the previous year, The previous year's figure was positively influenced by the aforementioned sale of the RF power business. Now Moving on to the development of the Infineon share, your share, between the beginning of the past fiscal year on October 1st 2018 and the close of the trading last Friday, Infineon is the red line the Infineon share price rose by 13%, thereby slightly outperforming the German Stock index tax. In the 1st months of this period, stock markets suffered from the tightening of the trade conflict between the USA and China and the deteriorating economic outlook. At the end of March, Infineon adjusted its growth targets downwards, as I mentioned earlier, which led to a significant decline in the share price. On 3rd June 2019, as you can see, quite clearly on the chart, Infineon announced the acquisition of Cyprus On this day, the share closed 8% below the previous day's price. Why? This development reflects several factors In a volatile market environment, we announced the largest acquisition in Infineon's corporate history, Cypress was known outside the USA, mostly only 2 industry insiders, the purchase price of 1,000,000,000 if without doubt, not low the synergy potential and Doctor. Plus already said a lot about this with respect to our strategy that justifies it will be realized to a large extent in the medium to long term through revenue synergies And finally, we have announced a financing corporate concept that includes around 30 percent equity for the acquisition. The core objective that we are pursuing with this financing concept is to maintain an investment grade rating for the combined company. This ensures that Infineon continues to be able to withstand unexpected periods of economic downturns even after the acquisition and to take advantage of market opportunities at any time, we want Infineon to continue to have a solid capital structure and thus have access to capital markets and financing sources at all times. The rating agency standards in Poor's global ratings, rates Infineon's creditworthiness as BBB, and following the announcement of the planned acquisition of Cyprus, has placed us on what is referred to as a credit watch with a negative outlook. This is common practice in such transactions and means that Infineon will remain investment grade after the acquisition with the plant financing structure. We took measures very swiftly Cyprus acquisition. This consistent action has contributed to the noticeable price recovery since late summer. You can see the main steps behind me. The initial financing of the entire acquisition amount was guaranteed by 3 banks which was then syndicated to 20 National And International Banks. In June 2019, the same month as the acquisition was announced, we raised around 1,000,000,000 through a capital increase thus quickly reducing the refinancing risk. Let me explain this in more detail. Was authorized in accordance with Article 4 Section 4A of the articles of association to increase the share capital of the company with the approval of the Supervisory Board in the period up to February 11, 2020 by up to 1,000,000 by issuing new registered no par value shares against cash or noncash contributions. On the basis of this authorized capital 2051, the management board decided on June 17, 2019, 18 to increase the company's share capital by 1,000,000 against cash contributions and excluding the preemptive rights of shareholders through issuance of 112,773,000 923 new registered no par value shares with a notional value of per share. The Supervisory Board approved this resolution of the Investment Finance And Audit Committee of the Supervisory Board on June 17 2019. The new shares were issued at a price of per share giving a total issue amount of 225,547,846. Due to the exclusion of shareholders preemptive rights, the new shares could be placed with institutional investors by means of an accelerated book building process. So this basically happened overnight. At a price of EUR 13.70 per share, the gross issue proceeds amounted to EUR 1,545,000,000 before commissions and costs. The exclusion of preemptive rights does enable the company to raise capital quickly, taking advantage The placement price represented a discount of 4.6% compared to the previous days closing price. At the end of September, we took a further refinancing step and broke new ground for Infineon By issuing what are referred to as hybrid bonds, which, as the name implies, has both equity and bond characteristics, we raised additional capital of around 1000000000. Under IFRS The hybrid bond is accounted for fully as equity. The rating agency standard and Pours counts 50 percent of our hybrid bond as equity, which helps us considerably in achieving the targeted equity ratio of the overall financing. Now this perspective, the capital increase and the hybrid bond already bring us to a good of eligible equity in total. These steps give us great flexibility with regard to the timeline and instruments for the remaining refinancing requirements. We will adapt our financing concept to the specific constellation after the acquisition has been consummated and in particular, we will carefully examine whether a further step to strengthen the equity base makes sense. However, a direct placement of shares would be only one of several several possible measures the vast majority of the refinancing that is still open, will be carried out via bonds as planned. Since the capital increase, the Infineon share has, and this is the red curve again, and now we're at the top significantly outperformed the DAX and the Philadelphia Semiconductor index in short socks, which is relevant for us. We are impressed and delighted by the strong interest of investors and banks in our financing rounds. Ladies and gentlemen this underlines the confidence in the market opportunities of your company. In addition to financing risks, A major acquisition is also associated with currency and interest rate risks. On the one hand, we have to pay the purchase price in US dollars, And on the other hand, we want to take advantage of the currently very favorable interest rates from the issuer's perspective. We have insured both by concluding appropriate hedging transactions, which will only take effect when the Cyprus acquisition is closed. And this brings me to our dividend proposal. We continue to pursue 2 goals with our dividend policy. We want our shareholders to have a fair share in Infineon's economic development, And we want to pay a dividend that is at least constant, even in times of stagnating or declining earnings. The net income is not In connection with Agenda item 2, the management board and the supervisory board proposed a constant dividend of per share on the basis and consequently, the total dividend payout increased for 3 reasons. 1st, the capital increase second, performance share plan becoming due, and third, the exercise of stock options. I would like to explain these to you briefly. The more than 112,000,000 new shares issued in June 2019 as part of the capital increase are already fully entitled to a dividend for which is part of the variable compensation of the members of the management board and executives and that is due in October 2019, was serviced with treasury shares previously held by the company. As long as the shares were held by the company, they were not entitled to dividends With the transfer of the shares from the company to the members of the management board and executives, the dividend entitlement has been activated. In total, the volume is a relatively small 600,000 shares The company still holds 5,431,693 shares, which are not entitled to dividends. Finally, the exercise 1000 new shares entitled to dividends. Taking into account the newly added dividend entitled shares, The anticipated dividend payment for the past fiscal year will probably increase to 1,000,000 compared with 1000000 in the previous year. Moving on to the outlook. As Doctor. Ploss already mentioned, we expect revenue growth of 5% give or take two percentage points for the 2020 fiscal year. As I said earlier, this guidance is based on the assumption that our business will not be significantly affected by been included in this guidance either in the middle of the guided range, the segment result margin should be about 16%. We assume an exchange rate of $1.13 to the U. S. Dollar, which by the way corresponds to the actual average exchange rate of the previous 2019 financial year, our business model is geared towards long term structural growth. A large portion of this comes from power semiconductors. Due to the long lead times for semiconductor manufacturing, we have to make investment decisions early in conjunction with the current economic slowdown, it leads temporarily to a lower utilization and thereby to a negative impact on our margin. Conversely, however, it would have been much more it would have had much more severe consequences if we were permanently limited by our production capacities. Delivery, reliability is a critical success factor for Infineon. It is a major reason why our customers choose and value Infineon as a supplier. In total, we plan to invest around 1,000,000,000 this fiscal year, excluding Cyprus. Approximately One third of this amount will be allocable to production buildings, including the infrastructure and office buildings. We invest in order to establish the conditions to benefit from the next market upswing and fully exploit our structural growth potential the single largest project remains the continued construction of the clean room for the new 300 millimeter fab in filler Austria. The timeline for the completion of the new clean room will be adjusted according to market developments, and we expect product to start at the end of the 2021 calendar year. I would now like to comment on some items on the agenda of today's annual general meeting, which are rather more technical in nature under item 7 of the agenda the board of management and the supervisory board proposed that the conditional, capital 2021 be set aside. According with the articles of incorporation, This conditional capital was created in order to issue subscription shares to employees of Infineon Technologies AG and its group companies. From conditional capital 2021, 10,000,018,668 shares were issued, Now it is no longer required because the 2010 stock option plan has expired in the meantime and no more options can be exercised. Under Agenda item 8, the management board and the supervisory board proposed the creation of new authorized capital 2021, for general purposes. It is to be available for capital increases against cash and or noncash contributions and is to replace authorized capital 2015. 1, which expired a couple of days ago on 11th February, 2020. The total volume is up to 1,000,000. And thus, like the previous authorized capital 2015, 1, Again, this corresponds to just under 30 percent of the current share capital. The shareholders have preemptive rights also with the authorized capital 2020 one on principle. However, under certain conditions and with the approval of the supervisory board, the management board may exclude the preemptive rights. On Agenda item 9, the 2018 annual general meeting authorized the management board to issue bonds with warrants and or convertible bonds with a total nominal value of up to 1,000,000,000 and resolved a contingent capital 2018 of 1,000,000. Other words, 130,000,000 shares. The management board was also authorized to exclude shareholders preemptive rights on the warrants and or convertible bonds in certain cases, in particular, if the issue price of the warrants and or convertible bonds is not significantly lower than their market value referred to as the simplified exclusion of preemptive rights. This option to exclude preemptive rights is limited to 10% of the share capital. The capital increase from authorized capital carried out in June 2019 has to be counted towards this. However, as a result, It is now no longer possible to issue warrants and or convertible bonds with simplified exclusion of preemptive rights. In order to continue to give the company the opportunity to issue bonds with warrants and or convertible bonds in the future, in particular, with a simplified exclusion of preemptive rights, The authorization and the conditional capital 2018 should be canceled now and replaced by a new authorization the maximum volume remains unchanged. The written reports of the management board on agenda items 89 contained further detailed explanations particular also on the constellations in which the subscription rights can be excluded. At this point, however, I would like to specifically mention that the limit of a possible exclusion of subscription rights to exclude subscription rights are now limited to a total of 10 Dear shareholders, Infineon has performed well in a challenging 2019 fiscal year. After the boom in previous years, we had to adjust to a changed situation and break hard. We reacted well and above all quickly In the long term however, we see continued structural growth potential in a large number of applications in which Infineon has a particularly strong presence. With this Cyprus acquisition, we intend to exploit this potential even more comprehensively. We therefore adjust our targets for revenue growth segment result margin and investment to sales ratio over the cycle. Doctor. Foss explained the strength of the combined company from a strategic perspective. Is also reflected in across all cycles by an average of more than to 19% as integration progresses. As a result, the of the reduced capital intensity of the combined companies we are planning an investment to sales ratio of 13% instead of 15% of revenue. As usual, this figure does not include investments in front end clean rooms, along with their infrastructure and certain large office buildings due to the higher segment result margin and the reduced capital intensity we expect a gradual will be supported by through to the 2022 fiscal year. The complementary portfolios enable additional system solution offerings of chips that will generate long term revenue synergies of more than 1,500,000,000 years a year. In taking investment decisions, we will continue to follow our proven strategy of fully leveraging our medium to long achieve this primarily by ensuring delivery reliability, a key criterion for our customers. We are convinced that by investing through all phases of the economic cycle, we not only offer our customers the greatest added value but also provide you my dear shareholders with an attractive return on your investment in our share. Ladies and gentlemen, my particular thanks go to you for your attention and for your trust in our company. Fildingtang? Thank you, Doctor. Schneider. For that accurate description of the financial situation of our company. This brings us to the end of the statements by the Board of Management. And this is also the end of the Internet transmission open to everyone. So it is now being switched off. The remainder of the annual meeting, including the general debate and the following votes, can now only be followed by our shareholders

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