Automotive Conference Call London, 10 October 2017

Peter Schiefer Division President Automotive

Agenda

Please regard the glossary at the end of the presentation.

Disclaimer: This presentation contains forward-looking statements about the business, financial condition and earnings performance of the Infineon Group. These statements are based on assumptions and projections resting upon currently available information and present estimates. They are subject to a multitude of uncertainties and risks. Actual business development may therefore differ materially from what has been expected. Beyond disclosure requirements stipulated by law, Infineon does not undertake any obligation to update forward-looking statements.

Megatrends shaping the automotive market; significantly increasing semi content per car

Enabling safety towards Vision Zero Enabling CO² reduction

Enabling the communication of cars

Enabling security in connected cars

Infineon's automotive business is outgrowing the market since 2010

* Infineon automotive revenue as reported to Strategy Analytics incl. revenue from ATV, IPC and PMM. Adjusted to calendar year. Source: Strategy Analytics, "Semiconductor Vendor Ranking", 2010 through 2016.

Infineon's position in the automotive semiconductor universe

* Divestiture of NXP's Standard Product business ("Nexperia") closed on 16 Feb 2017; hence included in the 2016 ranking. Source: Strategy Analytics, "Automotive Semiconductor Vendor Market Shares", April 2017

WW car production growth rate expected to be ~2% for 2017 and 2018; China slowing down

Light vehicle market development (car production)

Source: IHS Markit, Technology Group, "Light vehicle production & sales volumes", September 2017 update

Megatrend 1: advanced driver assistance systems and automated driving

towards Vision Zero

in connected cars

Conceptual overview of an ADAS/AD system

ADAS/AD semi growth driven by radar and camera sensor modules over the next 5 years

L2 vehicles in 2020:~8m L3 vehicles in 2025: ~3m L4/L5 vehicles in 2030: ~4m

Source: Strategy Analytics; IHS Markit, Technology Group; Infineon. Bill of material contains all type of semiconductors (e.g. radar modules include µC).

More sensors required for any next level of automation will lead to sensor cocoon in L4/5

		Level of automation
	Level 2	Level 3	Level 4/5
Application*	Automatic emergency brake/ forward collision warning
	Parking assist		Valet parking
	Lane keep assist	Highway assist	Highway and urban chauffeur
Radar # of modules**	≥ 3	≥ 6	≥ 10
Camera # of modules**	≥ 1	≥ 4	≥ 8
Lidar # of modules**	0	 1	≥ 1
Others	Ultrasonic	Ultrasonic Interior camera	Ultrasonic Interior camera V2X

* Source: VDA (German Association of the Automotive Industry); Society of Automotive Engineers ** Market assumption

Infineon's radar solutions reduce development efforts on customer side

Infineon's value proposition

› SiGe-based radar solutions are the best solutions on the market
› Infineon's radar solutions facilitate the system integration at customers and reduce their development efforts
› Infineon's optimized solutions safeguard component interoperability and comply with functional safety requirements

Introduction of central computers triggers demand for high-perf., fail operational MCUs

Vast majority of microcontroller units (MCUs) will be used in ECUs

Source: Strategy Analytics, Infineon estimates

32-bit MCUs capture the lion share of \$-opportunity in automotive applications

› Infineon AURIX™ fits to ~90% of all 32-bit use cases and is clearly gaining market share in 32-bit automotive market, e.g. radar signal pre-processing

Source: Strategy Analytics, "Automotive Semiconductor Demand Forecast 2014 – 2023", January 2017

AURIX™ microcontroller covers ~90% of all 32-bit control and processing use cases

32-bit MCU use cases AURIX™ radar controller and chipset

› Performance: multi-core microcontrollers supporting latest radar data analysis algorithms
› Scalability: portfolio covering basic assist systems up to complex automated driving
› Safety: chipset enabling design of safe radar systems up to ISO26262 ASIL-D
› Security: Latest crypto-processing technology for protection against hacker attacks

Five major radar system suppliers plan to use AURIX™ 2G radar controller in 2020 onwards

Megatrend 2: clean cars

CO² emission targets are the key triggering points for increase in semiconductors

Source: The International Council for Clean Transportation, 2017

(1) Higher efficiency of the 'classic' ICE:

› EPS (electric power steering)
› start-stop
› dual-clutch
› alternator

(2) Energy efficiency of body applications:

› power distribution
› electric motors for pumps and fans

(3) Electrification of the drivetrain:

› main inverter
› auxiliary inverter
› onboard charger
› battery management

Power semiconductor demand for all different levels of electrification

Infineon has unparalleled package expertise for high-power main inverter applications

The incremental demand of power semiconductors is a significant opportunity

Source: Strategy Analytics, "Automotive Semiconductor Content", May 2017; Infineon * "power" includes linear and ASIC; "others" include opto, small signal discrete, memory With the transition from ICE to xEV the power semi content in powertrain increases by ~15x

Source: Strategy Analytics, "Automotive Semiconductor Content", May 2017; Infineon

Various market drivers yield a sweet spot for xEV: BEV SUV and PHEV SUV

Politics / Legislation

SiC has some significant advantages over Si but will stay a niche market for some time

Premium cars will adopt SiC first in 2020+; mass market will follow not before 2025

Penetration of SiC in main inverters (qualitative forecast only)

Infineon is well prepared for the adoption of SiC power modules in electro-mobility

Infineon demonstrated SiC power module for automotive applications

› 3-phase half-bridge module
› Power density doubled compared to IGBT
› HybridPACK™ Drive compatible
› Target applications:
› Main inverter (300 kW)
› High-voltage DC-DC converter

› More than 15 leading OEMs and tier-1s are evaluating the Infineon HybridPACK™ Drive CoolSiC™ MOSFET power module

Two types of charging: AC-DC on-board charging and DC-DC off-board charging

Source: Yole Développement, "Power SiC 2017: Materials, Devices and Applications", September 2017

Ultra high-power charging stations will use Infineon CoolSiC™ MOSFET technology

First OEM has chosen Infineon CoolSiC™ MOSFET technology for ultra high-power charging stations to shrink size and weight

› Ultra high-power charging stations will reduce charging time for 300 km reach from 3 h to 20 min
› Specification: 350 kW; 800 V; 400 A
› Just 5 full SiC power modules (plus 5 driver ICs) are required per station due to extraordinary high performance of the Infineon CoolSiC™ MOSFET
› Infineon starts to deliver in Oct 2017

The project

› A consortium of German OEMs have signed MoU to create highest-powered charging network in Europe
› Goal: quick build-up of sizable number of stations in order to enable long-distance travel for battery electric vehicle drivers through open-network charging stations along highways
› Roll-out plan:
› start in 2017
› initially 400 sites in Europe
› 1,000s of charging points by 2020

2022 trends for SiC in xEV: inverter is leading application; modules are leading form factor

* Infineon estimate; incl. discrete IGBTs and IGBT modules, excl. MOSFETs

** Source: Yole Développement, "Power SiC 2017: Materials, Devices and Applications", September 2017