Infineon Technologies AG

Investor Presentation • Sep 28, 2015

Investor and Analyst Presentation

Jochen Hanebeck Division President Automotive

London, 28 September 2015

Global market shares
		2013	Delta	2014
1	Renesas	13.3%	-1.3%pt	12.0%	According to financial figures, Infineon becomes #1 in H1 CY15
2	Infineon	9.6%	+0.9%pt	10.5%
3	STM	7.9%	-0.1%pt	7.8%	reaching \$1.362m vs. \$1.341m for Renesas.
4	Freescale	7.4%	+0.1%pt	7.5%
5	NXP	6.5%	+0.3%pt	6.8%
Market shares by product
Power		Sensors		Microcontroller
Others Toshiba TI	24.8% 28.5% 3.7% 6.1% 6.2% 9.5% 6.4% FSL	Infineon +3.5% 14.7% ST	Others 36.3% 3.7% Micronas Freescale	21.1% 11.5% 7.7% 7.0% 5.9% 6.6%	Others Bosch Renesas NXP 11.8% 4.0% Cypress 4.6% 37.7% Microchip 4.8% Infineon 7.6% +0.1% TI 8.7% 20.8% Allegro Infineon +/-0% Freescale
	Bosch Renesas Source: Strategy Analytics, April 2015			Melexis ADI

4 megatrends are shaping ATV market, significantly increasing the semiconductor content of vehicles

ADAS/Autonomous driving

• › From ADAS to semi-automated and finally autonomous driving
• › Every world region is striving for "0-accident"

xEV/eMobility

› Mandated CO² reductions make electrification of powertrain inevitable

› Advanced connectivity is driven by making the car part of the Internet

• › Increased connectivity and software content increase risk exposure to hackers
• › Internal/external connectivity must be secured

Connectivity Advanced security

› The car will be fully connected (V2I, V2V, in-vehicle)

4 megatrends are shaping ATV market, significantly increasing the semiconductor content of vehicles

ADAS/Autonomous driving

• › From ADAS to semi-automated and finally autonomous driving
• › Every world region is striving for "0-accident"

xEV/eMobility

› Mandated CO² reductions make electrification of powertrain inevitable

› Advanced connectivity is driven by making the car part of the Internet

(V2I, V2V, in-vehicle)

• › Increased connectivity and software content increase risk exposure to hackers
• › Internal/external connectivity must be secured

› The car will be fully connected

Connectivity Advanced security

The 5 levels of increased automation (VDA/SAE definition)

ADAS system overview

More sensors required for each automation level

Sensor technologies	2015 Euro NCAP*	2018 Euro NCAP*	Level 2	Level 3	Level 4/5
Front looking camera Front looking radar Front looking lidar	0.5 0.5 	1 1 	1 1 	1 1 	1 1 1
Surround camera Corner radar Surround radar	  	 2 	 2 	 4 	4 4 4
Rear looking camera Rear looking radar	 	 	 	1 	1 1
Driver monitoring Camera				1	1
V2X Sensor					1
Ultrasonic sensors	10-12 sensors per car
Surround Radar	8 radar sensors e.g. for garage parking

Radar Camera Lidar

* Euro-NCAP is focusing on collision avoidance, requirements are changing over time

Infineon is the market leader in Radar, 10 millions chips shipped already Sense

*Source: IHS ADAS Sensor Market Shares –2014

Camera system overview

› Mono camera

AURIX™ as Host Controller

› Stereo camera

› Time-of-flight camera

Infineon AURIX™ microcontrollers make autonomous driving reliable

Compute

During the CES 2015, Audi demonstrated their autonomous driving capabilities. Audi's piloted driving concept car "Jack", an Audi A7 Sportback, completed a 550 mile piloted drive from Silicon Valley to Las Vegas.

The central driver assistance ECU ("zFAS") is the core of future systems for piloted driving for Audi.

Within zFAS Infineon's AURIX™ is the interface to the car architecture, hosts different functions and acts as safety monitor. Courtesy: AUDI

* zFAS = zentrales Fahrerassistenzsystem = German term for central driver assistance ECU.

Fail operational actuators: BOM to grow by factor 1.3 with level 3 to 5 Actuate

© ZF Lenksysteme

EPS Electronic control unit

Safe power supply

Semiconductor content itemized to automation levels

Average ADAS semiconductor content per level of automation

4 megatrends are shaping ATV market, significantly increasing the semiconductor content of vehicles

ADAS/Autonomous driving

• › From ADAS to semi-automated and finally autonomous driving
• › Every world region is striving for "0-accident"

xEV/eMobility

› Mandated CO² reductions make electrification of powertrain inevitable

› Advanced connectivity is driven by making the car part of the Internet

› The car will be fully connected (V2I, V2V, in-vehicle)

• › Increased connectivity and software content increase risk exposure to hackers
• › Internal/external connectivity must be secured

Connectivity Advanced security

Semiconductor content of EV/HEV vehicles falls right into Infineon's core competence

Infineon is best positioned to benefit from xEV car ramp

4 megatrends are shaping ATV market, significantly increasing the semiconductor content of vehicles

ADAS/Autonomous driving

• › From ADAS to semi-automated and finally autonomous driving
• › Every world region is striving for "0-accident"

xEV/eMobility

› Mandated CO² reductions make electrification of powertrain inevitable

› Advanced connectivity is driven by making the car part of the Internet

• › Increased connectivity and software content increase risk exposure to hackers
• › Internal/external connectivity must be secured

Connectivity Advanced security

› The car will be fully connected (V2I, V2V, in-vehicle)

Basic security considerations

Infineon's product portfolio for security

Infineon ideally positioned to benefit most from megatrends ADAS, xEV and security

ADAS, CO² reduction and adoption of premium features drive Infineon growth

Sources: IHS Inc., Strategy Analytics, Infineon

Market growth based on car production growth and increasing number of features

Infineon is strong in all markets, balancing exposure to slower growth in China

Source: Strategy Analytics, April 2015 (*: China, Korea, Russia, India, South America & further countries

Automotive financials at a glance

^* Based on Q4 guidance, as of 30 July 2015

Summary

Automotive track record for 40 years:

• › #2 in Automotive globally first time double digit market share, closing gap to Renesas
• › Consistent revenue growth and profitability

Growth drivers:

• › Compound annual car production growth of ~2%
• › Compound annual semiconductor content growth of 3%-4%
• › CO² reduction, Advanced safety and comfort

Differentiators:

• › System leader in Safety/ADAS, CO² reduction
• › Security expertise
• › Quality excellence
• › Broad regional customer base

Glossary

• ABS Anti-lock braking system
• ACC Adaptive Cruise Control
• AEB Autonomous Emergency Braking
• ADAS Advanced driver assistance systems
• ATV Automotive segment
• BASt The Federal Highway Research Institute
• CAGR Compound annual growth rate
• DC/DC Direct current/Direct current converter
• ECU Electronic control unit
• EMS Engine management system
• EPS Electric power steering
• ESC Electronic stability control
• EV Electric vehicle
• eWLB embedded wafer-level ball grid array
• HEV Hybrid electric vehicle
• IC Integrated circuit
• ICE Internal combustion engine

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.

• PMD PMD Technologies GmbH
• ROW Rest of world
• SAE Society of Automotive Engineers
• SOP Start of production
• StVO Road traffic act
• VDA German Association of the Automotive Industry
• V2X Vehicle to Infrastructure
• xEV EV and HEV