Infineon Technologies AG

Investor Presentation • Oct 2, 2018

ATV Call Peter Schiefer Division President Automotive

London, 2 October 2018 update on 5 October 2018

Infineon is well positioned in its addressed automotive product segments

• › #1 in power with 26% (+0.4 %-pt)
• › #2 in sensors with 12.9% (+0.4 %-pt)

› Significant design-wins for µC in safety/ADAS/AD

• › Market share trend: Infineon benefits disproportionately from the megatrends
• › Electro-mobility: power, drivers, µC
• › Automated driving: radar, lidar, µC

Source: Strategy Analytics, "Automotive Semiconductor Vendor Market Shares", April 2018

Infineon is continuously outgrowing the automotive semiconductor market since 2010

Infineon automotive semiconductor market share development*

* Infineon automotive revenue as reported to Strategy Analytics incl. revenue from ATV, IPC and PMM. Adjusted to calendar year. Source: Strategy Analytics, "Automotive Semiconductor Vendor 2017 Market Share", April 2018.

Infineon is outgrowing the automotive power semiconductor market by 3%-points

1.1 1.3 1.3 1.4 1.8 1.8 2.0 2.4 5.0 5.9 6.2 6.7 7.4 7.1 7.9 9.1 21.4% 22.2% 21.0% 21.3% 24.8% 25.2% 25.6% 26.0% 10% 15% 20% 25% 30% 0 5 10 15 2010 2011 2012 2013 2014 2015 2016 2017 Infineon automotive power revenue total automotive semiconductor power market market share Infineon automotive power semiconductor market share development* [USD bn] CAGR(10-17): +8.9% CAGR(10-17): +12.0% Consolidation of IRF

* Infineon automotive revenue as reported to Strategy Analytics incl. revenue from ATV, IPC and PMM. Adjusted to calendar year. Source: Strategy Analytics, "Automotive Semiconductor Vendor 2017 Market Share", April 2018.

WW car production in good shape for 2019; Impact from WLTP and tariffs not significant

*** this slide has been presented at the call ***

Source: * based on or includes content supplied by IHS Markit, Automotive Group, "Annual light vehicle production volumes", August 2018 update

** Infineon

WW car production in good shape for 2019; Impact from WLTP and tariffs not significant

*** this slide has been updated after the call ***

Source: * based on or includes content supplied by IHS Markit, Automotive Group, "Annual light vehicle production volumes", September 2018 update

** Infineon

Electro-mobility

Megatrend electro-mobility is boosting businesses of ATV, IPC and PMM divisions

Charging station

• › Majority of charging points is Si-based (PMM: CoolMOS™, IPC: IGBTs)
• › First design-wins for SiC-based ultra highpower charger (> 350 kW) logged in (IPC)

Onboard charger

• › Si-based (PMM: CoolMOS™, ATV: IGBTs)
• › First application inside the car for SiC
• › long-term option for GaN

Main inverter (ATV)

• › Main source of power semi content
• › Dominated by Si-based solutions for the next decade
• › Premium cars will adopt SiC in 2020+; mass market to follow in 2025+

DC-DC converter (ATV)

› Si-based; long-term option for SiC and GaN

Battery

› IGBTs (ATV) and CoolMOS™ (PMM) for battery switch

xEV growth driven by emission regulation; but consumer preferences thwart CO² reduction

^*Note: Japan has already met its 2020 statutory target as of 2013

Source: 1) based on or includes content supplied by IHS Markit, Automotive Group, "SUV-B segment to drive crossover growth in Europe", January 2018 2) based on or includes content supplied by IHS Markit, Automotive Group, "Light Vehicle Alternative Propulsion Forecast", March 2018

Short-term, MHEV/FHEV/PHEVs are first choice; mid-term BEVs are preferred solution

• › Due to absence of improvements in CO² reduction in the past years, OEMs have to switch to "catch-up" mode until 2021
• › OEMs expected to push 48 V MHEV, FHEV, PHEV systems near-term to meet CO² targets
• › Mid- to long-term, BEVs will become the preferred solution

The incremental demand of power semiconductors is a significant opportunity

Source: Strategy Analytics, "Automotive Semiconductor Content", May 2018; Infineon * "power" includes linear and ASIC; "others" include opto, small signal discrete, memory

Transition from ICE to FHEV / PHEV increases demand for power semis in drivetrain by ~19x

314 314 44 17 109 317 [USD] 375 740

Semiconductor value in internal combustion engine vehicles

Semiconductor value in FHEV / PHEV

• drivetrain power semiconductors
• drivetrain non-power semiconductors
• other features (power and non-power semiconductors)

Source: Strategy Analytics, "Automotive Semiconductor Content", May 2018; Infineon

Design-win for drivetrain platform proves Infineon's strength in xEV system solutions

Key facts

• › Design-win at a North American tier-1 for the key BEV drivetrain platform of a major European OEM
• › Complete system solution:
• HybridPACK™ Drive IGBT module
• IGBT driver IC
• AURIX™ 32-bit µC
• power management IC
• several small signal components
• › start of production: 2020

2018-10-02 Copyright © Infineon Technologies AG 2018. All rights reserved. 13

Infineon has unparalleled expertise and portfolio for high-power xEV applications

* Source: Infineon estimates

Infineon offers the complete automotive-grade portfolio of SiC components

• › More than 20 leading OEMs and tier-1s are evaluating Infineon's SiC solutions for automotive
• › Customer feedback clearly shows that Infineon has deepest understanding of technical quality threats
• › Infineon's internal quality test procedures exceed common industry norm; test results proof that Infineon's SiC products reach that quality level
• › Industry's broadest portfolio allows customer to "pick what they need" rather than to "take what we have"

Automated Driving

For Automated Driving more compute power but also a higher security and safety is needed

Increased sensor requirements drive the content in the next 5 years and beyond

* Source: VDA (German Association of the Automotive Industry); Society of Automotive Engineers

** Market assumption

First major 3D ToF sensor design-win for gesture camera and in-cabin sensing

› Major European OEM selected Infineon 3D ToF sensor XENSIV™ REAL3™

1st use case: gesture camera

• › outstanding sensitivity and sunlight robustness, high dynamic range performance at 50% reduced illumination power*
• › 50% reduced system BoM through higher integration and lower LED counts*
• › used in facelifts for all OEM car models from mid class to premium class

2nd use case: in-cabin sensing

• › same unique sensor features enable extended use-cases covering driver and passenger
• › used in next-generation car platforms
• › start of production: 2020
• * compared to the next best solution in the market

Key facts About 3D in-cabin sensing

Infineon automotive-grade 3D ToF sensor XENSIV™ REAL3™ (IRS1125A) in optical BGA package

ToF provides depth and amplitude simultaneously

cloud

Examples of use-cases:

• › hand gestures: pointing direction, touch prediction
• › occupant detection
• › body position
• › smart airbag
• › object in hand: eating, reading, using phone

Infineon opens the door for mass-deployable lidar systems for Automated Driving

Classification of long-range lidar systems
mechanically moving mirror	solid state optical system
	scanning optical phased array	flash lidar	scanning MEMS-based mirror
+ proven concept - bulky - expensive	allows optical + beam forming high demand of - laser power, especially for long-range	+ no moving parts more complex - laser system (more expensive, higher power demand)	+ robust signal path + more compact more cost-effective + roadmap for higher level of + integration
› Lidar is Infineon's AD 1st System reference design MEMS mirror portfolio expansion adjacent Infineon to radar laser diode mirror › Infineon intends to repeat AURIX™ driver MEMS mirror its radar success story
› In addition to MEMS, room detector receiver FPGA diodes to increase BoM by receiver, microcontroller, power power supply / power management management ICs

AURIX™ has been selected as domain controller by leading OEMs

Outstanding characteristics make AURIX™ first-choice µC in the AD platform market

AURIX™ is the market reference as host controller in central computing platforms complementing CPU/GPU to make central computer robust and fail operational

› Awareness for safety and security aspects of AD is increasing rapidly

› Infineon is cooperating with the leading AD platform providers

ADAS/AD semi growth driven by radar and camera sensor modules over the next 5 years

Source: Strategy Analytics; Infineon

Bill of material (BoM) contains all type of semiconductors (e.g. radar modules include µC); sensor fusion does not include memory BoM are projected figures for the respective time frame

Mid-term outlook

ATV's mid-term growth is strongly driven by xEV and ADAS/AD

Composition of incremental € revenue over five year planning horizon by application

xEV

• › Driven by emission regulations and consumer preferences towards SUV and reduced acceptance of diesel
• › Short-term, PHEVs and MHEVs are first choice; mid-term BEVs are the preferred solution

ADAS/AD

• › NCAP and ADAS/AD Level 1-2 drive the semiconductor content in the next years
• › AD Level 3-5 will create structural growth long-term

ATV's trendline growth: ~10%

Comfort and design will further drive innovation and growth in 'classical' segments

Examples of growing applications in classical segments

Comfort Design

7,0% Comfort features drive growth within the body & infotainment segments.

Source: Strategy Analytics, May 2018

Lighting is becoming a key element of OEM brand recognition and design signature

Clean cars, ADAS/AD, and adoption of premium features drive growth

Infineon is well positioned in its addressed automotive product segments

Source: Strategy Analytics, "Automotive Semiconductor Vendor Market Shares", April 2018

Glossary

AD	automated driving	micro hybrid	vehicles using start-stop systems and limited recuperation
ADAS	advanced driver assistance system
AEB	automatic emergency braking	MHEV, mild hybrid	mild-hybrid electric vehicle; vehicles using start-stop systems, recuperation, DC-DC conversion, e-motor
EPS	electric power steering	OBC	on-board charger
EV	electric vehicle
FHEV	full-hybrid electric vehicle	PHEV	plug-in hybrid electric vehicle
FPGA	field programmable gate array	SiC	silicon carbide
GaN	gallium nitride	SiGe	silicon germanium
HEV	hybrid electric vehicle	ToF	time-of-flight
HSM	hardware security module
ICE	internal combustion engine	V2X	vehicle-to-everything communication
lidar	light detection and ranging	xEV	all degrees of vehicle electrification (EV, MHEV, FHEV, PHEV)

Peter Schiefer Division President Automotive

• › since 2016: Division President Automotive
• › Sep 2012: Head of Operations, responsible for Manufacturing, Supply Chain, Purchasing
• › Jan 2012: Division President Power Management & Multimarket
• › 2013 2016: Member of the Supervisory Board of Infineon Technologies Austria
• › since 2012: Member of the Supervisory Board of Infineon Technologies Dresden
• › since 2018: Member and Vice Chairman of the Board of Directors of the JV SIAPM (SAIC Infineon Automotive Power Modules (Shanghai) Co. Ltd.)
• › Peter Schiefer was born in Munich, Germany, in 1965. He holds a Diploma in Electrical Engineering from the University of Applied Sciences in Munich.
• › He joined Infineon (Siemens AG until 1999) in 1990.

Disclaimer

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.

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