Infineon Technologies AG — Investor Presentation 2016

Jun 21, 2016

Deutsche Bank ADAS conference London, 21 June 2016

Anton Müller Senior Vice President Automotive

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)

2016-06-21 Copyright © Infineon Technologies AG 2016. All rights reserved. 3

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 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 Up to 12 ultrasonic sensors per car Potential future replacement by RF CMOS radar Automated parking

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

Sense

• › 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

• › 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

Driver monitoring Front collision warning

• › 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

2016-06-21 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

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

xEV growth driven by power semis

* expected number of vehicles; source: IHS, "Alternative Propulsion Forecast", January 2016

#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

2016-06-21 Copyright © Infineon Technologies AG 2016. All rights reserved. 16

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

ADAS/autonomous driving semiconductor market				xEV/electro-mobility semiconductor market
[USD m]		6,700		[USD m]
	3,827						4,740
					3,050
1,801 ~30%	~40%	~45%		1,380 ~80	~80%		~80%
2015	2020	2025		2015	2020		2025
higher market coverage driven by radar › penetration, AURIX™ penetration and actuators				› high market coverage already in 2015 will be kept with ramp-up of new power products (e.g. HybridPACK™ DSC and SiC MOSFETs)
Source: IHS, Strategy Analytics, Infineon			Addressed by Infineon Not addressed by Infineon

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 as best positioned semi player to overall benefit from two biggest megatrends

Automotive market Infineon ADAS

• › 50% of Infineon automotive market growth driven by ADAS/xEV
• › Infineon addresses
• › up to 80% of xEV BoM and
• › 40% of ADAS BoM

Infineon ADAS

• #2 automotive semiconductor
• #1 power semiconductors
• #2 sensor semiconductors
• #3 microcontrollers

• #1 xEV semiconductors

• 1. Infineon is the market leader for radar
• 1. Infineon develops camera solutions (e.g. driver monitoring, safety and security in front collision warning)
• 1. AURIX™ as ADAS market reference for safety and security applications (e.g. camera, sensor fusion)