Infineon Technologies AG

Investor Presentation • Feb 2, 2016

Company Presentation February 2016

Infineon at a glance

Business Segments Employees

• › Automotive
• › Industrial Power Control
• › Power Management & Multimarket
• › Chip Card & Security

Strong technology portfolio with more than 25,000 patents and patent applications (as of Sep. 2015)

We make life easier, safer and greener – with technology that achieves more, consumes less and is accessible to everyone. Microelectronics from Infineon is the key to a better future.

Part of your life. Part of tomorrow.

Infineon enables eco-friendly, connected and safe mobility

Applications

Efficient powertrain for combustion, electric and hybrid vehicles, charger station for electric vehicles, car safety, driver assistance systems, chassis and comfort electronics, authentication, mobile security, traction

Infineon enables efficient generation, transmission and conversion of electrical energy

Applications

Energy transmission and conversion, renewable energy generation, home appliances, power tools, power management (adapters, chargers, power supplies), LED lighting systems, mobile devices, industrial drives, industrial vehicles

Infineon enables security in the connected world

Applications

Internet of Things, Industry 4.0, mobile security, embedded security, trusted computing, machine to machine, (mobile) payment, SIM applications, transport ticketing, government identification

Top positions in all major product categories

Automotive semiconductors

total market in 2014: \$27.5bn

Automotive semiconductors incl. semiconductor sensors

Source: Strategy Analytics, April 2015

Discrete power semiconductors and power modules Source: IHS Inc., September 2015

Smart card Ics

total market in 2014: \$2.63bn

Microcontroller-based smart card ICs Source: IHS Inc., July 2015

Leadership in system understanding will foster future growth and profitability

1 and technology leader in Power System leader in Automotive Leader in Security Solutions Competitive advantages Revenue Growth: ~8% Segment Result Margin: ~15% Investment-to-Sales: ~13% Average-cycle financial targets

Financial Year 2015: Revenue Split by Segment

FY 2015 Revenue: € 5,795m*

* Including International Rectifier from 13 January 2015 to 30 September 2015 ** Other Operating Segments; Corporate & Eliminations

February 2016 Copyright © Infineon Technologies AG 2016. All rights reserved. 9

Infineon Group Results for FY 2014* and FY 2015**

Revenues		Net Income		[€ Million]	2014	2015
+34% 5,795				Revenues	4,320	5,795
4,320				Segment Result (SR)	620	897
		535	634	SR Margin	14.4%	15.5%
FY14	FY15	FY14	FY15	Net Income	535	634
				Free Cash Flow	317	-1.654
				Investments	668	785
				Net Cash	2,232	220
				Market capitalization***	~9,240	~11,355

* excl. International Rectifier

*** share price as of September 30th, 2014: 8.193 Euro; share price as of September 30th, 2015: 10.055 Euro ** Including International Rectifier from 13 January 2015 to 30 September 2015

Q1 FY 2016: Strong year-on-year growth: organic and due to integration of International Rectifier

* Including International Rectifier from 13 January 2015

Q1 FY 2016: Revenue, result and margin per segment

• * Including International Rectifier from 13 January 2015
• ** The business with XMC industrial microcontrollers developed by ATV and CCS was transferred to PMM and IPC with effect from 1 October 2015. Previous year's figures have been adjusted accordingly

Tight customer relationships are based on system know-how and app understanding

EMS partners Distribution partners

Product range

Automotive (ATV)

• › 32-bit automotive microcontrollers for powertrain, safety and driver assistance systems
• › Discrete power semiconductors
• › IGBT modules
• › Magnetic and pressure sensors
• › Power ICs
• › Radar
• › Transceiver (CAN, LIN, Flex RayTM* )
• › Voltage regulators

Industrial Power Control (IPC)

• › Bare die business
• › Discrete IGBTs
• › Driver ICs
• › IGBT modules (highpower, medium-power, low-power)
• › IGBT module solutions incl. IGBT stacks

Power Management & Multimarket (PMM)

• › Control ICs
• › Customized chips (ASICs)
• › Discrete low-voltage and high-voltage power transistors
• › GPS low-noise amplifier
• › Industrial microcontrollers
• › Low-voltage and highvoltage driver ICs
• › MEMS and ASICs for silicon microphones
• › RF antenna switches
• › RF power transistors
• › TVS (transient voltage suppressor) diode

Chip Card & Security (CCS)

• › Contact-based security controllers
• › Contactless security controllers
• › Dual-interface security controllers (contactbased and contactless)

*FlexRay is a trademark licensed by FlexRay Consortium GbR

Our global R&D network

Worldwide manufacturing sites frontend and backend

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Our global sales network

Corporate Social Responsibility (CSR)

• › CSR comprises our voluntary commitment in: Human Resources Management and Human Rights, Environmental Sustainability, Occupational Safety and Health, Corporate Citizenship*, CSR Supply Chain Management as well as Business Ethics.
• › Infineon entered the UN Global Compact as one of the first semiconductor companies already in 2004 and is voluntary committed to the 10 Principles.
• › Infineon is for the 6th time listed in the Sustainability Yearbook.
• › Infineon is continuously listed in the Dow Jones Sustainability Index since 2010 and for the first time in the Dow Jones Sustainability World Index in 2015 and thus is among the top 10% of the most sustainable companies in the world.
• › Infineon does not compromise in human rights and business ethics.
• › Infineon's products and solutions as well as our efficient resources management enable a significant net ecological benefit.

*social engagement of companies.

Corporate Social Responsibility We are excellent in Resources Efficiency

At Infineon, less is more

About 40% less electricity consumed per square centimeter produced wafer than the global average

About 21% less water consumed per square centimeter produced wafer than the global average

About 50% less waste generated per square centimeter produced wafer than the global average

We use resources much more efficient in our production processes than the global average of the semiconductor industry.

Basis for the calculations are the square centimeters processed wafer area in the front-end production and consumptions according to WSC definition.

The information and data given in this document apply to the Infineon Technologies group, except for International Rectifier companies.

Corporate Social Responsibility We create a net ecologic Benefit

Emission Reduction enabled by our products and solutions

Net ecological benefit: CO² emissions reduction around 35 million tons

1) This figure considers manufacturing, transportation, function cars, flights, materials, chemicals, water/wastewater, direct emissions, energy consumption, waste, etc. and is based on internally collected data and externally available conversion factors. All data relate to the 2015 fiscal year.

2) This figure is based on internally established criteria, which are explained in the explanatory notes. The figure relates to the calendar year 2014 and considers the following fields of application: automotive, LED, PC power supply, renewable energy (wind, photovoltaic), drives as well as induction cookers. CO₂ savings are calculated on the basis of potential savings of technologies in which semiconductors are used. The CO² savings are allocated on the basis of Infineon market share, semiconductor content and lifetime of technologies concerned, based on internal and external experts' estimations. Despite the fact that CO₂ footprint calculations are subject to imprecision due to the complex issues involved, the results are nevertheless clear.

The information and data given in this document apply to the Infineon Technologies group, except for International Rectifier companies.

Let's get connected

February 2016 Copyright © Infineon Technologies AG 2016. All rights reserved. 21