Infineon Technologies AG — Investor Presentation 2016

Jun 22, 2016

UBS ADAS tour Infineon Automotive Munich, 22 June 2016

Jochen Hanebeck Division President Automotive (ATV)

System leadership with most balanced portfolio in the market

	Global market shares
		2014	Delta	2015
1	NXP (incl. FSL)	13.3%	+0.9%	14.2%
2	Infineon	10.5%	-0.1%	10.4%
3	Renesas	12.0%	-1.7%	10.3%
4	STMicro	7.8%	-0.1%	7.7%
5	TI	6.1%	+0.9%	7.0%
6	Bosch	6.2%	-0.8%	5.4%

Source: Strategy Analytics, Vendor Ranking 2015 April 2016 (for company revenue 2015 & 2014)

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)

ADAS system overview

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	0.5	1	1	1	1
Front looking radar	0.5	1	1	1	1
Front looking lidar					1
Surround camera					4
Corner radar		2	2	4	4
Surround radar					6
Rear looking camera				1	1
Rear looking radar					1
Driver monitoring Camera				1	1
V2X sensor					1
Parking aid	Up to 12 ultrasonic sensors per car
Automated parking	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

Sense

Depending on test cases, AEB will be either BiCMOS or CMOS

• › Today, SiGe is state of the art.
• › Beyond 2020, CMOS will find its sweet spot in 360° applications.

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 Sense Compute Actuate

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

2016-06-22 Copyright © Infineon Technologies AG 2016. All rights reserved. 11

ADAS semi growth driven by radar and camera sensor modules

Sense Compute Actuate

Average ADAS semiconductor content per level of automation

ADAS system chipset coverage by Infineon

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)

2016-06-22 Copyright © Infineon Technologies AG 2016. All rights reserved. 14

Infineon is well positioned globally to benefit over-proportionally from xEV boom

We will experience a shift from Si IGBT to SiC MoSFET

Independently from the voltage class, HEV subsystems are not in the sweet spot of GaN technology

xEV growth driven by power semis

*Source: IHS Alternative Propulsion Forecast - Jan 16, 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

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)

The connected car and move to open systems offer many use cases for our customers

Various security tools have to be added on the way to a secure architecture

Various security tools have to be added on the way to a secure architecture

Enabling the root of trust for internal and external communication

2016-06-22 Copyright © Infineon Technologies AG 2016. All rights reserved. 22

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 automotive financials at a glance

Revenue and segment result development

[EUR m]

Infineon automotive is excellently positioned in the top growth applications of today

Automotive market	Infineon´s value proposition
› 50% of Infineon automotive market growth driven by ADAS/xEV › Infineon addresses › up to 80% of xEV BoM and › 40% of ADAS BoM	1. Infineon enables assisted, automated and autonomous driving by a system approach covering sense, compute, and actuate
› 100% of security Infineon automotive	2. Our products are based on technologies which enhance xEV cost–performance
#2 automotive semiconductor #1 power semiconductors #2 sensor semiconductors #3 microcontrollers	3. Infineon provides innovative products for a secure car architecture and thus offers an appropriate level of protection