Infineon Technologies AG

Investor Presentation • Jun 3, 2018

Company Presentation June 2018

Infineon at a glance

Our mission

We make life

easier, safer and greener.

A world leader in semiconductor solutions

Our vision We are the link between the real and the digital world.

Our values

We innovate

We perform

We commit We partner

Business growth in the semiconductor market is driven by four key trends

Infineon enables eco-friendly, connected and safe mobility

Applications

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

Infineon enables efficient generation, transmission and conversion of electrical energy

Applications

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

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 2017: \$34.5bn

Power discretes and modules

total market in 2016: \$15.9bn

Microcontroller-based Smart Card ICs

total market in 2016: \$2.79bn

Semiconductor Vendor Share", April 2018

by IHS Markit, Technology Group, "Power Semiconductor Annual Market Share Report", August 2017

by IHS Markit, Technology Group, "Smart Cards Semiconductors Report", July 2017

Our strategy is targeted at value creation through sustainable profitable growth

Focus › Focus on fastest growing segments of semi market ›Tackle global megatrends	›	maximize ROI	Technology leadership Leverage core competencies in different end markets to		System understanding ›Create value for customers through system understanding
Auto System leader in automotive		Power RF Broad RF and #1; system and sensor technology technology leader portfolio			Security Leader in security solutions
			Average-cycle financial targets
~9% p.a. Revenue growth		~17%+ Segment result margin		~15% Investment-to-sales (thereof capex*: ~13%)
* Infineon reports under IFRS
2018-06-12			Copyright © Infineon Technologies AG 2018. All rights reserved.			9

The outlook for the global semiconductor market remains positive

Global semiconductor market

in billion \$

Market size (revenue) Forecast revenue range

Source: WSTS for historical data. Forecast: of WSTS, IHS Markit Technology Group, Gartner, IC Insights; last update April 20, 2018

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

• Forecast", March 2018

Financial Year 2017: Revenue Split by Segment

FY 2017 Revenue: € 7,063 m

Infineon Group Results for FY 2016 and FY 2017

Infineon Group
				Results for FY 2016 and FY 2017
Revenues		Net		[€ Million]	2016	2017
+9%	7,063	Income		Revenues	6,473	7,063
6,473				Segment Result (SR)	982	1,208
		743	790	SR Margin	15.2%	17.1%
FY16	FY17	FY16	FY17	Net Income	743	790
				Free Cash Flow	490	594
				Investments	826	1,022
				Net Cash	471	618
				Market capitalization*	~17.987	~24.167
2017: 21.27 Euro				*share price as of September 30th, 2016: 15.88 Euro; share price as of September 30th,
2018-06-12				Copyright © Infineon Technologies AG 2018. All rights reserved.		13

Infineon Group Results for Q1 FY18 and Q2 FY18

Results for Q1 FY18 and Q2 FY18 Revenues Net [€ Million] Q1 18 Q2 18 Income +3% Revenues 1,775 1,836 1,836 1,775 Segment Result (SR) 283 314 457 205 SR Margin 15.9% 17.1% Q1 FY18 Q2 FY18 Net Income 205 457 Free Cash Flow (135) 334 Gross Cash Position 2,312 2,438 Net Cash Position 503 649 14 2018-06-12 Copyright © Infineon Technologies AG 2018. All rights reserved.	Infineon Group

Infineon Group Results for Q2 FY17 and Q2 FY18

Infineon Group Results for Q2 FY17 and Q2 FY18
Revenues +4%	Net Income	[€ Million]	Q2 17	Q2 18
1,836 1,767		Revenues	1,767	1,836
	457	Segment Result (SR)	296	314
	199	SR Margin	16.8%	17.1%
Q2 FY17	Q2 FY18	Net Income	199	457
		Free Cash Flow	82	334
		Gross Cash Position	2,049	2,438
		Net Cash Position	32	649
2018-06-12		Copyright © Infineon Technologies AG 2018. All rights reserved.		15

Revenue by Segment Q2 FY2018

Revenue split by regions FY 2016 and FY 2017

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

Automotive Segment – Making cars clean, safe and smart

Industrial Power Control Segment – Driving industry and much more

Power Management & Multimarket Segment – Achieving more, consuming less

MOSFETs, Power ICs, RF switches, LNAs, Si-Mics, RF Infrastructure, Radar ICs, Environmental Sensors

Chip Card & Security – Delivering security for the connected world

• › Smart card payment
• › Electronic passports and ID documents
• › SIM cards for mobile communication

• › Transport ticketing

• › Mobile device security and payment

• › Information and communications technology (ICT) security
• › Industrial and automotive security
• › IoT connected device security

Product range

(ATV)

• › 32-bit automotive microcontrollers for powertrain, safety and driver assistance systems *FlexRay is a trademark licensed by FlexRay Consortium GbR Status: 30 September 2017
• › Discrete power semiconductors
• › Magnetic and pressure sensors
• › IGBT modules
• › Power ICs
• › Radar sensor ICs (77 GHz)
• › Transceiver (CAN, LIN, Flex Ray™)*
• › Voltage regulators

Industrial Power Control (IPC) Automotive

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

Power Management & Multimarket (PMM)

• › Control ICs
• › Customized chips (ASICs)
• › Discrete low-voltage and high-voltage power transistors 2018-06-12 Copyright © Infineon Technologies AG 2018. All rights reserved. ²³
• › GPS low-noise amplifier
• › Low-voltage and highvoltage driver ICs
• › MEMS and ASICs for silicon microphones
• › Pressure sensors
• › Radar sensor ICs (24 GHz, 60 GHz)
• › 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 (contact-based and contactless)
• › Embedded security controllers

Our global R&D network

Worldwide manufacturing sites frontend and backend

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 voluntarily committed to the 10 Principles.
• › Infineon is for the 8th time listed in the Sustainability Yearbook.
• › Infineon is continuously listed in the Dow Jones Sustainability Index since 2010 and for the third time in the Dow Jones Sustainability World Index in 2017 and thus is among the top 10% of the most sustainable companies in the world. 2018-06-12 Copyright © Infineon Technologies AG 2018. All rights reserved. ²⁷
• › 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 47% less electricity consumed per square centimeter manufactured wafer than the global average

About 28% less water consumed per square centimeter manufactured wafer than the global average

About 53% less waste generated per square centimeter manufactured 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.

Business Continuity Integrated management

*ISO 27001/14001/OHSAS 18001 worldwide certification scheme; ** ISO 50001 certified at EU sites

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