Infineon Technologies AG — Investor Presentation 2016

Sep 8, 2016

Deutsche Bank dbAccess TMT Conference London, 8 - 9 September 2016

Dominik Asam Chief Financial Officer

Table of Contents

Infineon at a glance

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Technology leadership and system understanding fosters growth and profitability

1, system and technology leader system leader in automotive Leader in security solutions Competitive advantages Revenue Growth: ~8% Segment Result Margin: ~15% Investment-to-Sales: ~13% (Capex*: ~11%; capital. R&D*: ~2%) Average-cycle financial targets * Infineon reports under IRFS broadest technology portfolio;#1 in SiGe; become #1 in base stations by 2020 Auto Power RF Security

Infineon's Revenue Development (excl. IRF) Outperformed Total Semi Market

Revenue Infineon* [lhs]

• * Based on Infineon's portfolio (excl. Other Operating Segments and Corporate & Eliminations) per end of 2015 fiscal year.
• ** Based on market development assumptions FY99's revenue figures for some smaller product categories have been derived from the FY00's revenue figures.
• *** Scale indexed to the Infineon FY99 revenue.

Source: Infineon; WSTS (World Semiconductor Trade Statistics), November 2015

Table of Contents

Deal rationale at a glance

GM 55%* CAGR 20%

• › Become #1 in RF power amplifier market by ~2020 with most complete technology portfolio by capitalizing on technology disruption in cellular infrastructure
• › #1 in silicon carbide for power, strengthen automotive and industrial and accelerate market introduction with cutting-edge products as cost-performance leader and create thereby a higher addressable market for Infineon
• › Deal is margin and adjusted EPS accretive from day 1 with expected 55% incremental gross margin* and 20% incremental revenue growth of the acquired businesses
• › For detailed information on the deal rational please refer to the web call and the corresponding investor presentation at http://www.infineon.com/poweringthefuture

Infineon benefits from industrial, auto and security, the by far fastest growing segments

CAGR 2015 – 2020 by Semiconductor Industry Segment

Source: IHS Markit, Worldwide Semiconductor Shipment Forecast, June 2016

* In calendar year 2015

** source: ABI Research, "Secure Smart Card & Embedded Security IC Technologies", January 2016; microcontroller ICs

Infineon is system leader with most balanced portfolio in the market

Source: Strategy Analytics, "Automotive Semiconductor Vendor Market Shares", April 2016

Four megatrends are shaping the automotive market, significantly increasing the semi content per vehicle

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)

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ADAS system overview and chipset coverage by Infineon

More sensors required for each automation level – sensor "cocoon" in level 4/5

Sense

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 6
Rear looking camera Rear looking radar	 	 	 	1 	1 1
Driver monitoring Camera				1	1
V2X sensor					1
Parking aid Automated parking					Up to 12 ultrasonic sensors per car Potential future replacement by RF CMOS radar

Up to 12 SiGe radars per vehicle (24/77 GHz)

Radar Camera Lidar

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

Infineon market leader in radar; 20m sensor chips sold; ~50% CAGR16-21 based on design wins*

• * Refers to 77 GHz radar sensor chip market

Infineon's automotive offering in ADAS camera systems

Sense Compute

Driver monitoring Front camera

• › Most robust detection of head position, head orientation and eye closure
• › Observe the state of the driver and passengers

• › Optimize head-up displays and augmented reality to driver's head position

• › AURIX™ microcontroller is today the reference for safety allowing ASIL-D systems

• › The safe & secure microcontroller is represented in most of today's camera systems
• › OEMs prefer software on AURIX™

Secure µCs from Infineon offer the required safety and necessary scalability

Compute

Infineon AURIX™ microcontrollers make autonomous driving reliable

Compute

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

Key components from Infineon, designed for reliability:

• › AURIX™ controller as decision maker and interface to the car architecture
• › DC-DC safety system supply

Strategic cooperation with TTTech to enable zFAS* based architecture and position Infineon as leading supplier

* zFAS = zentrales Fahrerassistenzsystem

30%+ higher BoM on fail operational systems in level 3-compliant vehicles

*Product to System (P2S): The shift from product thinking to system understanding is the core element of Infineon's strategy.

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ADAS semi growth driven by radar and camera sensor modules

Four megatrends are shaping the automotive market, significantly increasing the semi content per vehicle

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)

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Infineon is well positioned globally to benefit disproportionally from xEV boom

Silicon carbide can help accelerate the adoption of plug-in (hybrid) electric vehicles

* Source: IHS Markit, "Alternative Propulsion Forecast", Jan 2016 (includes BEV, PHEV, HEV, mild-hybrids)

xEV growth driven by power semis

*Source: IHS Markit, "Alternative Propulsion Forecast", January 2016, expected number of vehicles

#1 semi supplier of German premium OEMs

Courtesy: BMW

The expected big expansion of PHEV model line-up from premium OEMs will boost Infineon revenues

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

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

~8% p.a. through-cycle growth

Infineon is #1 and technology leader in power semiconductors

1 in the market*

Broadest product and technology portfolio

Addressing broadest range of applications

300 mm thin-wafer manufacturing for power semiconductors

System leader with digitalization of the control loop and functional integration

Leader in next-generation power semiconductor materials GaN and SiC

* Source: IHS Markit, "Power Semiconductor Discretes & Modules Report – 2016", July 2016

Infineon is ideally positioned to gain further market share and earn superior margins in power semiconductors

Strong #1 position in power allows driving of key areas of differentiation and innovation

Unique 300 mm thin wafer power semiconductor manufacturing

Compound semiconductors GaN and SiC

Digitalization of the power control loop

Functional integration of IGBT modules

Table of Contents

Progress on 300 mm manufacturing technology on track

Advantages of 300 mm manufacturing of power semiconductors

• › When fully loaded, frontend manufacturing cost per unit will be 20 – 30% lower than on 200 mm.

• › Capital intensity is 30% lower than on 200 mm.

• › Less than 1%-pt margin headwind from 300 mm-related expenses (process development, product qualification and manufacturing infrastructure) already digested in today's P&L.

• › Cost break even versus 200 mm expected by end of CY17 when reaching 25 – 30% utilization.

Table of Contents

Infineon's long-term growth is based on sustainable growth drivers

~8% p.a. through-cycle growth

Financial calendar

Date	Location	Event
19 Sep 2016	Munich	Berenberg Bank and Goldman Sachs German Corporate Conference
21 Sep 2016	Munich	Baader Investment Conference
11 Oct 2016		ATV Conference Call by Peter Schiefer, Division President
16 – 17 Nov 2016	Barcelona	Morgan Stanley TMT Conference
23 Nov 2016*		Q4 FY16 and FY 2016 Results
29 – 30 Nov 2016	Scottsdale, AZ	Credit Suisse TMT Conference
02 Feb 2017*		Q1 FY17 Results
16 Feb 2017	Munich	Annual General Meeting
04 May 2017*		Q2 FY17 Results
01 Aug 2017*		Q3 FY17 Results
30 Nov 2017*		Q4 FY17 and FY 2017 Results

* preliminary

Institutional Investor Relations contacts

Dr. Jürgen Rebel

Corporate Vice President +49 89 234-21626

Investor Relations juergen.rebel@infineon.com

Joachim Binder

Senior Director +49 89 234-25649 Investor Relations joachim.binder@infineon.com

Holger Schmidt

Manager +49 89 234-22332 Investor Relations holger.schmidt@infineon.com

Tillmann Geneuss

Manager +49 89 234-83346 Investor Relations tillmann.geneuss@infineon.com