Infineon Technologies AG — Investor Presentation 2021

Nov 10, 2021

Fourth Quarter FY 2021 Quarterly Update

Infineon Technologies AG Investor Relations

Infineon at a glance

Financials FY21 revenue by product category

~5%	memory ICs
~12%	RF & sensors
~28%	embedded control and connectivity
~55%	power semi conductors
of total revenue		ATV	IPC	PSS	CSS

Since 1999, Infineon has grown by more than 10% p.a., thereby consistently outperforming the semiconductor market

Revenue Infineon Semiconductor World Market³ (adjusted for the Infineon fiscal year ending Sep 30)

1 In FY09 Infineon's management changed the measure it uses to assess the operating performance of its operating segments to "Segment Result" 2 Based on Infineon's portfolio (excl. Other Operating Segments and Corporate & Eliminations) per end of FY21 | 3 Source: WSTS (World Semiconductor Trade Statistics) in EUR adjusted for fiscal year, September 2021

FY21 revenue of €11,060m by target application

Infineon is a global top-10 player, #1 in power semiconductors, and ranked #3 in the overall microcontroller market

MCU suppliers 2020 total market: \$17.3bn¹ Power discretes and modules 2020 total market: \$20.9bn² Semiconductor suppliers 2020 total market: \$473bn¹ 16.1% 12.0% 5.6% 4.7% 4.1% 3.8% 3.0% 2.8% 2.4% 2.4% Intel Samsung SK Hynix Micron Qualcomm Broadcom Texas Instr. Nvidia Infineon MediaTek 17.2% 17.1% 14.7% 14.5% 12.7% 7.3% 2.0% 1.4% 1.2% 1.1% Renesas NXP Infineon STMicro Microchip Texas Instr. Nuvoton Samsung Toshiba Silicon Labs 2.4% 2.5% 2.6% 3.5% 4.6% 4.6% 5.0% 5.5% 8.3% 19.7% Diodes³ ROHM Renesas Vishay Fuji Electric Toshiba Mitsubishi STMicro onsemi Infineon

1 Based on or includes research from Omdia: Annual 2001-2020 Semiconductor Market Share Competitive Landscaping Tool – Q2 2021. August 2021. | 2 Based on or includes research from Omdia: Power Semiconductor Market Share Database – 2020. September 2021. | 3 Diodes acquired Lite-On Semiconductor in November 2020. Both companies are reported combined as Diodes. Results are not an endorsement of Infineon Technologies AG. Any reliance on these results is at the third party's own risk.

	Outlook Q1 FY221	Outlook FY221
Revenue	~ €3.0bn	€12.7bn +/- €500m
Segment Result Margin	~ 21%	At the mid-point of the revenue guidance: ~ 21%
Investments in FY22		~ €2.4bn
D&A in FY22	€1.7bn2 €1.6bn -
Free cash flow in FY22	~ €1.0bn

1 Based on an assumed average exchange rate of \$1.20 for €1.00 2 Including the effects of the purchase price allocation for Cypress and, to a lesser extent, International Rectifier Infineon's value creation is crystallized in a resilient through-cycle Target Operating Model

Target Operating Model¹

1 Infineon financial performance to approach targets as Cypress integration progresses

Growing annual revenues by €5bn+ in FY25 – multitude of growth drivers across markets/applications; well-diversified divisional split

Key levers identified to get to the target profitability flight level – 19% Segment Result Margin over the (next) cycle

Strategic differentiation through in-house manufacturing

In-house manufacturing

• › We manufacture power and sensor technologies in-house where we can gain a strategic advantage from our leading-edge manufacturing technologies and our outstanding process expertise
• › This results in a differentiation potential in terms of cost and/or performance
• › The current chip shortage highlights the strategic value of in-house manufacturing

Infineon's outsourcing share

Outsourcing

• › We work with outsourcing partners where we see no or only little differentiation to optimize our capital efficiency (CMOS and derivate technologies and standard packages)
• › We cooperate with subcontractors and foundries in order to ensure adequate capacity growth and flexibility
• › Infineon's outsourcing share is expected to increase from ~30% in FY21 to ~40% in FY25

We focus our investments to those areas with highest differentiation

1 Frontend clean rooms and major office buildings are not included

ESG: targets and achievements

We contribute a net CO² reduction of more than 70 million tons

Net ecological benefit: CO² emissions reduction of more than 70 million tons

Infineon is excellent in resource efficiency

We are committed to CO² neutrality by 2030

Our CO² -saving applications are high-growth, we are part of the solution!

The ~1:33 ratio is expected to further improve in the coming years

1 | 2 For explanatory notes see "ESG footnotes" in the appendix.

Infineon is excellent in resource efficiency and committed to CO² neutrality – sustainability is in our DNA

Infineon ranks among the 10 percent¹ most sustainable companies in the world

In CY19, we used resources in our manufacturing processes much more efficiently than the global average of the semiconductor industry¹ :

Infineon's CO² target² by 2025 and 2030

Net CO² emissions in million tons of CO² equivalents²

• Avoiding direct emissions and further reducing energy consumption
• Purchasing green electricity with guarantees of origin
• Compensate the smallest part by certificates that combine development support and CO² abatement

1 Based on the results of The Sustainability Yearbook 2020 by S&P Global in cooperation with RobecoSam | 2 Related to Scope 1 and 2 emissions

High-growth applications offer further additional CO² savings potential

In CY20:

PV energy: Annual installation capacity increase of ~15%²

Drives: Increasing penetration of more efficient drives³

EVs: Increased sales contributed to an average fleet emission reduction of 14 g/km in Europe⁴

1 Wood Mackenzie: Global Wind Power Market Outlook, Q2 2021. June 2021 | 2 Based on or includes content supplied by IHS Markit Climate and Sustainability Group: PV Installations Tracker, Q2 2021. June 2021 3 Based on or includes research from Omdia: Industrial Motor Control Sourcebook 2020. December 2020 | 4 CO² emissions from new passenger cars in Europe: Car manufacturers' performance in 2020 - 08/2021

External recognitions confirm our engagement in contributing to a sustainable society

	Rating/Score	Scale	Date
MSCI ESG	AA	CCC to AAA	02/2021
CDP	B climate scoring B water scoring	F to A	12/2020
Ecovadis	98th percentile "Gold" award	0 to 100	11/2020
Dow Jones Sustainability Index	81 Dow Jones Sustain ability™ World and Europe Index listing	0 to 100	11/2020
Ethibel Sustainability Index Excelence Europe"	Index member	-	05/2020
ISS ESG Corporate Rating	B Prime Status	D- to A+	01/2021
FTSE4Good Index	Index member	-	06/2021
Euronext Vigeo Eurozone 120 Index Euronext Vigeo Europe 120 Index	Indices member	-	06/2020
Sustainalytics	77 "Outperformer" level	0 to 100	06/2020

Infineon's Wide Band Gap Strategy

Leveraging full potential based on the power ratings and switching frequency required by the application

Comparison of technologies

Si

• › Si remains the mainstream technology
• › Targeting 25 V 6.5 kV
• › Suitable from low to high power

SiC

• › SiC complements Si in many applications and enables new solutions
• › Targeting 650 V 3.3 kV
• › High power high switching frequency

GaN

• › GaN enables new horizons in power supply applications and audio fidelity
• › Targeting 80 V 600 V
• › Medium power highest switching frequency

SiC – Infineon is serving all relevant applications

Focus applications Customers

Our Cold Split technology leads to significant reduction of raw material losses during SiC manufacturing

Strong CoolSiC™ portfolio expansion: by packages and by voltages

Broadest and best-in-class SiC portfolio

	Industrial					Automotive grade
	CoolSiC™ Diode	CoolSiC™ Hybrid		CoolSiC™ MOSFET		CoolSiC™ Diode	CoolSiC™ Hybrid		CoolSiC™ MOSFET
	Discrete	Discrete	Module	Discrete	IPM	Module	Discrete	Discrete	Discrete	Module
voltages
600 V
650 V
1200 V
1700 V
Continuous expansion of portfolio

SiC and GaN capacity expansion to respond to fast growing demand

Villach, Austria

• › 150/200 mm Si lines will be converted to SiC and GaN manufacturing while reusing non specific equipment
• › → SiC capacity secured in Villach
• › → GaN scaling-up to volume manufacturing

Further expansion in Kulim

• › Transfers of
• › 200 mm Si
• › WBG epitaxy as first step
• › Ground ready for 3rd module

GaN technology – Infineon well positioned to address key markets

1 GaN power devices market forecast. Yole Développement (Yole): Compound Semiconductor Quarterly Market Monitor. Q3 2021

Automotive

ATV at a glance

ATV revenue and Segment Result Margin FY21 revenue split by product group

Key customers

• › L1 and L2 will see strong growth as L0 share declines
• › L2+ shipments will grow from a comparatively small base
• › Robotaxi pilots and small-scale launches continue

Infineon's top market position is built on system competence based on an industry-leading product portfolio

Automotive semiconductors (2020 total market: \$35.0bn)

› Strengthened #1 position; increasing distance to #2

• › #1 in power semiconductors
• › Undisputed #1 in automotive NOR Flash memory ICs
• › #2 position in sensors
• › Solid #3 position in microcontrollers due to strong demand in AURIX™, TRAVEO™ and PSoC™ families

Sensors		Microcontrollers			Power semiconductors
Bosch	22.2%	Renesas	26.7%	Infineon	30.2%
Infineon	15.5%	NXP	26.3%	STMicro	16.3%
onsemi	10.0%	Infineon	16.9%	TI	10.3%
Melexis	8.6%	TI	9.8%	onsemi	7.1%
NXP	7.3%	Microchip	6.9%	Rohm	5.9%

Strategy Analytics: Automotive Semiconductor Vendor Market Shares. April 2021.

Electromobility

In the first nine month of CY21, xEV (PHEV + BEV) sales more than doubled y-y in all regions reaching ~4.5m units globally

Source: IHS Markit: PEV Volumens, preliminary numbers. July 2021

The road to emission-free cruising: Governments and OEMs indicated when to ban the ICE

The penetration of PHEV + BEV is accelerating; the incremental content of power semis in xEV is a significant opportunity for Infineon

1 Based on or includes content supplied by IHS Markit Automotive: Alternative Propulsion Forecast. September 2019, August 2021.

2 Strategy Analytics: Automotive Semiconductor Demand Forecast 2019 - 2028. July 2021; Infineon. "power" includes voltage regulators, ADCs and ASICs. 3 Due to missing ICE engine in BEV the weighted incremental semiconductor content for PHEV and BEV starts below the "~\$490" line.

For newly produced cars in CY21, about every second inverter for a PHEV or BEV car is equipped with Infineon power semiconductors

Share of inverters equipped with Infineon chips or modules PHEV and BEV cars in 2021: ~6m units 2021e PHEV + BEV inverters¹ Ex. of OEMs powered by Infineon Examples of SiC design-wins Renault Volkswagen NIO Cadillac SAIC Mini Nissan German Luxury OEM › Infineon has an excellent position to win upcoming SiC-based xEV platforms: − leverage huge IGBT customer base with broadest portfolio and full system solution − seamless and cost-effective upgrade path across entire power range Asian OEM Hyundai US OEM XPeng new!

1 Based on or includes content supplied by IHS Markit Automotive: Alternative Propulsion Forecast. August 2021; Strategy Analytics: Automotive Semiconductor Demand Forecast 2019 - 2028. July 2021; Infineon

Automated Driving

The car of the future is driving digitalization in many aspects and Infineon provides the ingredients

ADAS/AD

• › object recognition
• › advanced spatial sensing
• › MCU (AURIX™, TRAVEO™ 2, PSoC™)
• › radar sensor

software-over-the-air

• › remote OS updates
• › secure feature upgrades
• › NOR flash memory
• › security solution

infotainment and HMI

• › seamless digital entertainment
• › always-on, secure connectivity
• › intuitive user interface (UI)
• › MCU (AURIX™, TRAVEO™ 2, PSoC™)
• › Wi-Fi, Bluetooth, USB Type C
• › touch controller with CapSense™

comfort / premium

• › automatic exterior and interior lighting
• › passenger-specific automatic settings
• › MCU (AURIX™, TRAVEO™ 2, PSoC™)
• › pressure and magnetic sensors
• › LED driver ICs

digital instrument cluster

• › real-time driver information
• › user-specific digital content
• › MCU (AURIX™, TRAVEO™ 2, PSoC™)
• › NOR flash and RAM memory

The Infineon AURIX™ MCU family has become the first-choice automotive architecture for high-growth and safety-critical applications

Infineon AURIX™ revenue development over time

Industrial Power Control

IPC at a glance

IPC revenue and Segment Result Margin FY21 revenue split by product group (indicative)

Key customers

Market outlook for IPC division's target applications

Applications (% of FY21 segment revenue)	Market Outlook for CY22
Automation and Drives ~33%	› After strong recovery in CY21, growth rates returning to long-term averages with demand still exceeding supply and long lead times in CY22.
Renewable Energy Generation ~28%	› Wind: installations forecasted at similar level as in CY21 › PV with ongoing double-digit growth in installations
~17%	› Demand still driven by energy efficiency incentives for major appliances; growth after strong surge in CY21 expected to be flattish
Transportation ~7%	› Overall expectations dominated and dampened by still delayed recovery for traction in China; growth expected for delivery vehicles and eTrucks, as well as for traction projects in other regions
Power Infrastructure ~8%	› Strong growth of xEV driving charging infrastructure; continuous installation of renewable energy generation driving energy storage systems
Others ~7%	› Long-term positive outlook driven by general trend of electrification in emerging applications (e.g. eMarine)

Clear leader in discrete IGBTs and IGBT modules; fostering position in IPMs

Discrete IGBTs 2020 total market: \$1.59bn		IPMs 2020 total market: \$1.43bn		IGBT modules1 2020 total market: \$3.63bn
Infineon	29.3%	Mitsubishi	32.9%	Infineon	36.5%
Fuji Electric	15.6%	onsemi	17.1%	Fuji Electric	11.4%
Mitsubishi	9.3%	Infineon	11.6%	Mitsubishi	9.7%
onsemi	7.7%	Fuji Electric	11.2%	Semikron	5.8%
Toshiba	5.5%	Semikron	5.5%	Vincotech	3.3%
STMicro	4.6%	Sanken Electric	3.0%	Starpower	2.8%
Littelfuse	4.2%	STMicro	2.4%	Hitachi	2.7%
Renesas	3.8%	ROHM Semi	1.7%	Danfoss	2.5%
MagnaChip	3.1%	Hangzhou Silan	1.6%	Hitachi ABB PGS	2.3%
Hangzhou Silan	2.6%	Jilin Sino-Micro	0.9%	Bosch	2.1%

1 Including standard (non-integrated) IGBT modules and power integrated modules (PIMs) / converter inverter brake (CIB) modules Based on or includes research from Omdia: Power Semiconductor Market Share Database 2020. September 2021

Infineon will benefit from all CO² saving measures

Infineon provides solutions for all links in the energy conversion chain

Green energy generation provides large business opportunities

1 IEA: Net Zero by 2050 - A Roadmap for the Global Energy Sector. May 2021 | 2 Based on or includes content supplied by IHS Markit Climate and Sustainability Group: Grid Connected Energy Storage Market Tracker H1 2021. August 2021 3 Extrapolation; conservative assumption of equal ratio renewable generation to storage capacity

What comes next? Mid- to long-term structural growth opportunities

Power & Sensor Systems

PSS at a glance

PSS revenue and Segment Result Margin FY21 revenue split by product group

Key customers

Market outlook for PSS division's target applications

PSS's growth is built on many applications from different sectors in power and non-power

• › data center
• › enterprise server
• › PC, notebook
• › peripherals

• › chargers and adapters

• › base stations

• › backhaul cellular infrastructure
• › 5G massive MIMO
• › telecommunication servers

Computing Communications Smartphones Consumer Industrial

• › smartphones
• › mobile devices
• › wearables

• › USB Type-C, USB Type-C PD

• › eBikes, eScooter

• › multicopter
• › LSEV
• › gaming
• › TV sets

• › smart home

• › power supplies

• › EV on-board charger
• › charging infrastructure
• › PV inverter
• › power tools
• › lighting
• › Industry 4.0
• › aerospace

PSS – Power

Infineon is the clear leader in MOSFETs; growth potential in power ICs

15.8%

Power ICs² 2020 total market: \$24.3bn Discrete Power MOSFETs¹ 2020 total market: \$8.1bn 3.6% 3.6% 3.6% 4.3% 4.7% 5.8% 6.4% 7.2% 8.2% Renesas Dialog Maxim MediaTek onsemi STMicro Qualcomm Analog Devices Infineon Texas Instruments 2.2% 3.8% 3.9% 4.7% 4.9% 5.1% 7.7% 8.8% 12.4% 24.4% Hangzhou Silan Nexperia China Resources Vishay Alpha and Omega Renesas Toshiba STMicro onsemi Infineon

1 Discrete Power MOSFET market includes automotive MOSFETs, protected MOSFETs, SiC MOSFETs and GaN power transistors. | 2 Power IC market includes automotive power ICs. Based on or includes research from Omdia: Power Semiconductor Market Share Database 2020. September 2021

Data center – AI hyperscaler and telecom/edge computing are driving the growth

0 5 10 15 20 CAGR(20-25): 8% Server growth Power requirement per server [units m] 2020 2025e AI-enabled hyperscalers hyperscalers telecom & edge enterprise ~3x ~1.5x ~1.0x ~1.0x Power¹ :

Exponential increase in AI Training & Networking (ASIC/SoC/FPGA/CPU/ GPU) power level requires cutting-edge innovation in Device & Packaging technologies to solve power efficiency and density challenges

→ The bill of material is outpacing unit growth by a factor of ~1.3x.

1 Normalized overall power requirement per server board for x-comparison

Based on or includes research from Omdia: Data Center Server Equipment Market Tracker – 2Q21 Database. September 2021

Transition from 3G/4G to 5G drives demand in power semis for antennas and power supplies

• › driver #1: massive growth of data and computing power
• › driver #2: higher number of base stations due to dense network
• › driver #3: ~4x higher power semi content per radio board: from ~\$25 for MIMO antenna to ~\$100 for massive MIMO antenna array
• › driver #4: fog computing data center as a completely new market

What comes next? Mid- to long-term structural growth opportunities

PSS – RF and Sensing

Main applications addressed by PSS sensors portfolio

MEMS microphone		3D radar (24/60 GHz)		3D ToF image sensor		Environmental
	Best audio performance		Ultra-low power consumption		Best price / performance		High precision and Small form factor
	Low power consumption		Presence detection/ Vital Sensing		Face ID (biometrics), VR/AR		Measure CO 2
				Main applications
› Smartphone › True wireless stereo headsets › Smart speaker › Laptop & Tablet		› Automotive › Smart home › TV › Security camera › Smart building		› Smartphone: world facing and user-facing › Robotics › Automotive in-cabin sensing › Payment terminals		› Heating, ventilation, air conditioning (HVAC) › Air purifier › Smart thermostat › CO 2	/virus risk reduction

Sensor markets targeted by PSS offer attractive growth potential

3D ToF image sensor market Environmental sensor market*

* Infineon is addressing smart building, smart home, smart appliances, consumer IoT devices and automotive Source: Infineon estimates

Source: Infineon estimates

Unparalleled audio characteristics of our XENSIV™ MEMS microphones made Infineon #1 in 2019 with further m/s gain in 2020

Infineon's market share development in MEMS microphones (by units)

Based on or includes research from Omdia: MEMS Microphones Dice Market Shares 2021. July 2021

Technological progression of Infineon XENSIV™ MEMS microphones

Radar offers several use cases for presence detection and health monitoring

Presence detection Health monitoring

• › Room Occupancy Devices e.g. human localization and counting
• › Occupancy based heating and ventilation e.g. reduction of CO² level to prevent spreading of diseases

› Device switch on/off

e.g. reduction of energy consumption (e.g. lamp, TV, air conditioning…)

› Directional audio effects on individuum e.g. to improve audio quality (e.g. smart speaker, TV)

› Home surveillance

e.g. detection of intruders

› Sleep monitoring

Sleep detection, sleep quality, apnea & snoring detection (radar combined with MEMS microphone)

› Vital sensing for home Fitness

Heart rate and breathing rate measurement (person standing still after exercise)

Segmentation with radar enables smart devices to recognize each person in the room

Infineon 3D ToF is a versatile technology for many consumer applications

Infineon XENSIV™ PAS CO2 sensor enables highly-precise CO² measuring in an extremely small size

Photoacoustic spectroscopy (PAS) technology based on Infineon's high (SNR) signal-to-noise ratio MEMS microphone

• › Infineon XENSIV™ PAS CO2 sensor enables highly-precise, cost-effective and space saving CO² measuring
• › The technology offers an exceptionally small form factor (14 mm x 13.8 mm x 7.5 mm) that is 4x smaller and 3x lighter (2 grams) than the typical NDIR (non-dispersive infrared) sensor, allowing for more than 75% space savings in customer systems
• › The SMD package ensures compatibility with high-volume manufacturing standards, enabling cost-effective, fast assembly and system integration
• › Advanced compensation and configuration algorithms enable a plug-&-play sensor performance and fast design-to-market

XENSIVTM PAS CO2 leads to demand-oriented and energy efficient control of air conditioning systems

Infineon system solution addresses IoT market via combining XENSIV™ sensors, PSoC™ 6 MCU and connectivity

Key facts

• › Infineon offers system solutions comprising of sensor, MCU, connectivity and software libraries (apps, SDKs)
• › BLE functionality monolithically integrated on MCU
• › IoT target applications for radar: entrance control or presence detection for smart home and smart building
• › Radar solutions are anonymous and therefore respecting privacy
• › First orders for presence detection received from several Asian customers
• › Radar solution can perfectly be combined with Infineon's XENSIV™ PAS CO2 sensor for air quality monitoring

Example offering: Combination of sensors, microcontrollers and connectivity in development kit

Advantages of radar over passive infrared

• › super compact design; smaller system sizes
• › determination of person's direction, speed, distance
• › programmable; can flexibly be adapted to the target application
• › higher accuracy; more precise measurements of detected objects

Connected Secure Systems

CSS at a glance

CSS revenue and Segment Result Margin FY21 revenue split by product group

Key customers

Market outlook for CSS division's target applications

Infineon remains top player in security ICs

Security ICs (excl. NFC controllers; excl. NFC eSE) 2020 total market: \$2.8bn

Security ICs (excl. NFC controllers; excl. NFC eSE) 2020 by application

ABI Research: Smart Card and Embedded Security IC Technologies. October 2021

MCU and software are key for the success in IoT as they define the functionality and time-to-market of the device

With a broad set of key enabling technologies, Infineon is well positioned to capture growth opportunities

1 ABI Research: Wireless Connectivity Technology Segmentation and Addressable Markets. July 2021; excluding Chromebooks, desktop PCs, feature phones, media tablets, netbooks, smartphones, white box tablets.

Infineon acts as one-stop-shop with excellent RF, sensor, connectivity, power, memory and security solutions

1 ABI Research: Wireless Connectivity Technology Segmentation and Addressable Markets. July 2021; excluding Chromebooks, desktop PCs, feature phones, media tablets, netbooks, smartphones, white box tablets.

We are driving the smart home opportunity together with marketshaping customers

1 ABI Research: Wireless Connectivity Technology Segmentation and Addressable Markets. July 2021; excluding Chromebooks, desktop PCs, feature phones, media tablets, netbooks, smartphones, white box tablets. 2 ABI Research: Smart Home Hardware Market. June 2021. | 3 Incl. Smart Appliances, Smart Lighting, Flat Panel TVs, Smart Speakers & Displays, Smoke & Air Quality Sensors, Consumer Robotics, Thermostats and others.

Significant synergy potential of a combined company product portfolio

Edge AI is a fast developing market enabled by and calling for many of our core competencies

Edge AI to offer additional growth opportunities as inference workloads move to device level

Cloud AI

› Public and private clouds offer scalability and flexibility

Cloud AI

› Growing performance demand with higher power consumption (ASIC/SoC/FPGA/CPU/GPU)

Edge AI

Infineon:

• › Smart subsystems offer low latency, improved privacy, higher power efficiency
• › Growing solution demand for e.g. image and object recognition, autonomous material handling, predictive maintenance, and human-machine interface

Infineon: Power supply (AC-DC) Power conversion (DC-DC) Smart sensors with AI capabilities

Embedded control including connectivity and edge AI accelerators Smart power, toolchain/ecosystem, deployment services

For the Industrial IoT, Edge AI enables predictive maintenance and other use cases – playing right into our core competences

Predictive maintenance is a significant lever for productivity

Maintenance prediction for key assets (avoidance of fixed preventive maintenance cycles)

Advantages

• › Reduced downtime through optimized maintenance
• › Lower maintenance costs
• › Increase transparency on device usage

Edge AI-enabled control and field-level devices

Products and services from Infineon enable safe, secure, power-efficient, dependable implementation

Smart sensors

Edge AI enhances Industrial IoT to enable predictive maintenance,

Detect and pre-process signals through AI capabilities to recognize potential abnormal operation of equipment

increasing production efficiency and robustness

Edge AI processing and control

Edge AI enabled MCUs to identify at-risk equipment, repair urgency and control adaptation

Smart Actuators

Receive and implement instructions to reduce potential impacts in production

Security

Ensure secure communication and protection of critical information

Connectivity

Enable dependable communication across devices, factory levels, cloud and secure device management

Selected financial figures

Group financial performance

1 See notes for definition | 2 Calculated on a like-for-like basis

Automotive (ATV)

› Recovery of global car production continues to be hindered by supply limitations

• › Strong growth of electric vehicles penetration rates of battery electric and plug-in hybrid vehicles reached new highs
• › Supply constraints expected to persist well into CY22; shortages will ease only gradually

1 With effect from 1 Oct 2020, we transitioned a group of industrial microcontrollers with an annual sales volume of a low-double digit million Euros from ATV to CSS. Historical figures have been retroactively adjusted. 2 Calculated on a like-for-like basis, see notes

Industrial Power Control (IPC)

• › Renewable energy and power infrastructure nearly matched previous quarter's record levels
• › Automation and drives as well as major home appliances saw sequential increases transportation revenues declined
• › Going forward, gradual reversion to long-term average growth rates for key industrial applications expected

1 Calculated on a like-for-like basis, see notes

Power & Sensor Systems (PSS)

› Significant revenue increase driven by on-going strong demand, positive seasonality and an incrementally better supply situation

• › Particular strength in power stages for servers and expected seasonal snapback in smartphone components
• › Robust demand for majority of applications transitioning from a boom phase into a phase of very strong market demand

1 Calculated on a like-for-like basis, see notes

Connected Secure Systems (CSS)

• › Revenue and segment result improved by favorable product and customer mix
• › Strategy of generating higher value from system solutions gaining momentum
• › Demand for compute, connectivity, and security components remains strong supply constraints expected to persist

1 With effect from 1 Oct 2020, we transitioned a group of industrial microcontrollers with an annual sales volume of a low-double digit million Euros from ATV to CSS. Historical figures have been retroactively adjusted. 2 Calculated on a like-for-like basis, see notes

373

Q4 FY21

Gross margin and Opex

Therein non-segment result charges [EUR m] 11 8 4 6 68 60 60 57 58

^{308 311 328 342}

12.4% 11.8% 12.1% 12.6% 12.4%

SG&A expenses

SG&A expenses as % of revenue

Q3 FY21

RoCE and adjusted RoCE

Historical development of RoCe and adjusted RoCE

Adjusted RoCE (excl. effects from International Rectifier and Cypress acquisition, Deferred Tax Effects, RF Power sale) RoCE

Earnings-per-share and total cash return

Development of earnings-per-share (EPS) from continuing operations

Total cash return to shareholders

[EUR m]

• › Proposed dividend for FY21: €0.27 per share
• › Proposed dividend payout of €351m for FY21

Working Capital, in particular trade working capital components

1 For definition please see page "Notes"

2 Along with the integration of Cypress refund liabilities to customers are presented under "other current liabilities" instead of "trade receivables". Prior quarters' figures were adjusted accordingly for better comparability.

Liquidity development

Historical liquidity development

[EUR m]

Maturity profile

Maturity profile from 2021 to 2033

Graph excludes pre-existing Cypress convertibles of ~\$382m repayment value, maturing latest 2022, and additional debt with maturities between 2021 and 2023 totaling €6m. 1 On 1 Oct 2019, Infineon issued a perpetual hybrid bond with two tranches: €600m with first call date in 2025 and €600m with first call date in 2028; both are accounted as equity under IFRS. Conservative financial policy and strict commitment to investmentgrade rating are the basis for through-cycle flexibility

	Financial Policy Targets	Status Quo (LTM 30 September 2021)
Cash1 Gross	€1bn + at least 10% of revenues → €2.1bn	€1bn + 26% of revenues → €3.9bn
Debt2 Gross	≤ 2.0x EBITDA	2.2x EBITDA – target to be reached in FY22
› Flexibility for financing operating activities and investments through the cycle Comfortable liquidity position › Cushion for net pension liabilities and contingent liabilities
Balanced debt position	› Gross debt target temporarily exceeded for CY acquisition, but still compatible to investment-grade rating › Public commitment to return to target level of ≤ 2.0x – to be reached one year earlier, by FY22
Rating	Investment grade	BBB- positive outlook (by S&P Global)

1 Gross cash position is defined as cash and cash equivalents plus financial investments | 2 Gross debt is defined as short-term debt and current maturities of long-term debt plus long-term debt. EBITDA is calculated as the total of earnings from continued operations before interest and taxes plus scheduled depreciation and amortization

Glossary (1 of 2)

ABB	accelerated book building
ABS	anti-blocking system
AC	alternating current
AC-DC	alternating current - direct current
AD	automated driving
ADAS	advanced driver assistance system
AEB	automatic emergency braking
AFS	advanced frontlight system
AI	artificial intelligence
AR	augmented reality
ASP	average selling price
BEV	battery electric vehicle
BGA	ball grid array
BLE	Bluetooth Low Energy
BMS	battery management system
BoM	bill of material
BT	Bluetooth
CL	contactless
CPU	central processing unit
CRC	cyclical redundancy check
DC	direct current
DC-DC	direct current - direct current
DIF	dual-interface (contact-based and contactless)
DIY	do it yourself
DPM	digital power management
eCall	emergency call

ECC	error correction code
ECU	electronic control unit
EPS	electric power steering
eSIM	embedded subscriber identity module
ESS	energy storage system
EV	electric vehicle
FHEV	full hybrid electric vehicle
FPGA	field programmable gate array
G2M	go-to-market
GaN	gallium nitride
GPS	global positioning system
GPU	graphics processing unit
HEV	mild and full hybrid electric vehicle
HMI	human machine interaction
HSM	hardware security module
HST	high-speed train
HVAC	heating, ventilation, air conditioning
HW	hardware
IC	integrated circuit
ICE	internal combustion engine
IGBT	insulated gate biploar transistor
IoT	Internet of Things
IPM	intelligent power module
IVN	in-vehicle networking
iPol	image processing line
IRF	International Rectifier

Glossary (2 of 2)

IVN	in-vehicle networking
LCD	liquid crystal display
LDO	low dropout voltage regulator
LED	light-emitting diode
LSEV	low-speed electric vehicle
LSPS	LS Power Semitech Co. Ltd.
µC	microcontroller
Mb	megabit
MCU	microcontroller unit
MEMS	micro electro-mechanical systems
MHA	major home appliances
MHEV	mild hybrid electric vehicle
MIMO	multiple input, multiple output
micro-hybrid	vehicles using start-stop systems and limited recuperation
mild-hybrid	vehicles using start-stop systems, recuperation, DC-DC conversion, e-motor
MOSFET	metal-oxide silicon field-effect transistor
MPU	microprocessor unit
OBC	on-board charger
OEM	original equipment manufacturer
P2S	Infineon's strategic product-to-system approach
PAS	photo-acoustic spectroscopy
PFC	power factor correction
PHEV	plug-in hybrid electric vehicle
PMIC	power management IC
PoL	point-of-load
PSoC	programmable system-on-chip

PTC	positive temperature coefficient
PV	photovoltaic
RF	radio frequency
rhs	right-hand scale
Si	silicon
SiC	silicon carbide
SiGe	silicon germanium
SMD	surface mounted device
SMPS	switch-mode power supply
SNR	signal-to-noise ratio
SoC	system-on-chip
SOTA	software over-the-air
SPI	serial peripheral interface
SRAM	static random access memory
SW	software
TAM	total addressable market
TCO	total cost of ownership
ToF	time-of-flight
TPM	trusted platform module
UPS	uninterruptible power supply
USB	universal serial bus
V2X	vehicle-to-everything communication
VR	virtual reality
VSD	variable speed drive
Wi-Fi	wireless fidelity
WSC	World Semiconductor Council
xEV	all degrees of vehicle electrification (EV, HEV, PHEV)

Disclaimer

This presentation contains forward-looking statements and/or assessments about the business, financial condition performance and strategy of the Infineon Group. These statements and/or assessments are based on assumptions and management expectation resting upon currently available information and present estimates. They are subject to a multitude of uncertainties and risks, many of which are partially or entirely beyond Infineon's control. Infineon's actual business development, financial condition, performance and strategy may therefore differ materially from what is discussed in this presentation.

Beyond disclosure requirements stipulated by law, Infineon does not undertake any obligation to update forward-looking statements.

Specific disclaimer for Omdia – part of Informa Tech – reports, data and information referenced in this document:

The Omdia reports, data and information referenced herein (the "Omdia Materials – mostly former IHS Markit Technology Materials") are the copyrighted property of Informa Tech Research Ltd. and its subsidiaries or affiliates (together "Informa Tech") and represent data, research, opinions or viewpoints published by Informa Tech, and are not representations of fact. The Omdia Materials speak as of the original publication date thereof and not as of the date of this document. The information and opinions expressed in the Omdia Materials are subject to change without notice and neither Informa Tech nor, as a consequence, Infineon have any duty or responsibility to update the Omdia Materials or this publication as a result. Omdia Materials are delivered on an "as-is" and "as-available" basis. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in the Omdia Materials. To the maximum extent permitted by law, Informa Tech and its affiliates, IHS Markit and its Affiliates and their respective, officers, directors, employees and agents, disclaim any liability (including, without limitation, any liability arising from fault or negligence) as to the accuracy or completeness or use of the Omdia Materials. Informa Tech and/or IHS Markit will not, under any circumstance whatsoever, be liable for any trading, investment, commercial or other decisions based on or made in reliance of the Omdia Materials. The "IHS Markit" brand and logo have been licensed for use by Informa Tech. The "IHS Markit" brand and logo and any third-party trademarks used in the IHS Markit Technology Materials are the sole property of IHS Markit Group or their respective third-party owners.

Specific disclaimer for IHS Markit – reports, data and information referenced in this document:

The IHS Markit reports, data and information referenced herein (the "IHS Markit Materials") are the copyrighted property of IHS Markit Ltd. and its subsidiaries ("IHS Markit") and represent data, research, opinions or viewpoints published by IHS Markit, and are not representations of fact. The IHS Markit Materials speak as of the original publication date thereof and not as of the date of this document. The information and opinions expressed in the IHS Markit Materials are subject to change without notice and neither IHS Markit nor, as a consequence, Infineon have any duty or responsibility to update the IHS Markit Materials or this publication. Moreover, while the IHS Markit Materials reproduced herein are from sources considered reliable, the accuracy and completeness thereof are not warranted, nor are the opinions and analyses which are based upon it. IHS Markit and the trademarks used in the Data, if any, are trademarks of IHS Markit. Other trademarks appearing in the IHS Markit Materials are the property of IHS Markit or their respective owners.

Financial calendar

Date	Location	Event
17 – 18 Nov 2021	Barcelona → virtual	Morgan Stanley TMT Conference
19 Nov 2021	Hong Kong → virtual	JPMorgan 9th Global TMT Conference Asia
29 Nov – 2 Dec 2021	Scottsdale (AZ)	Credit Suisse TMT Conference
2 Dec 2021	Paris → virtual	Société Général Premium Review Conference
7 Dec 2021	Pennyhill Park (Surrey, UK)	Berenberg European Conference
9 Dec 2021	London	Deutsche Bank Auto Tech Day
3 Feb 20221		Q1 FY22 Results
17 Feb 2022		Annual General Meeting
9 May 20221		Q2 FY22 Results
3 Aug 20221		Q3 FY22 Results
15 Nov 20221		Q4 FY22 and FY 2022 Results

1 preliminary

Notes and ESG footnotes

Investments =	'Purchase of property, plant and equipment' + 'Purchase of intangible assets and other assets' incl. capitalization of R&D expenses
Capital Employed =	'Total assets' – 'Cash and cash equivalents' – 'Financial investments' – 'Assets classified as held for sale – ('Total Current liabilities' – 'Short-term debt and current maturities of long-term debt' – 'Liabilities classified as held for sale')
RoCE =	Operating profit from continuing operations after tax / Capital Employed = ('Operating profit' – 'Financial result excluding interest result' – 'Share of profit (loss) of associates and joint ventures accounted for using the equity method'-'Income tax') / Capital Employed
Working Capital =	('Total current assets' – 'Cash and cash equivalents' – 'Financial investment' – 'Assets classified as held for sale') – ('Total current liabilities' – 'Short term debt and current maturities of long-term debt' – 'Liabilities classified as held for sale')
DIO (days inventory outstanding; quarter-to-date) =	('Net Inventories' / 'Cost of goods sold') x 90
DPO (days payables outstanding; quarter-to-date) =	('Trade payables' / ['Cost of goods sold' + 'Purchase of property, plant and equipment']) x 90
DSO (days sales outstanding; quarter-to-date) =	('Trade receivables' - 'reimbursement obligations')* / 'revenue' x 90
	*without debtors with credit balances

Book-to-bill = Orders received / Revenue in Euro per quarter

Orders received contains order backlog and external customer forecast. External customer forecast includes consignment stock forecast by customers. Not included are internal consignment replenishment orders.

Orders received does not include unconfirmed orders received. Unconfirmed demand will be reported as orders received and in book-to-bill when it gets confirmed.

Orders received may not coincide with the IFRS 15 definition of a contract with a customer.

Like-for-like calculation as of Q3 FY21: In the light of continued strong order intake, Infineon has temporarily switched from automatic to manual order confirmation. As a result, comparatively fewer orders are being confirmed. To provide a comparable view, the book-to-bill figure has been adjusted by assuming the same confirmation rate of newly received orders as in the previous quarter.

ESG footnotes:

• 1) This figure takes into account manufacturing, transportation, own vehicles, travel, raw materials and consumables, chemicals, water/waste water, direct emissions, energy consumption, waste, etc. as well as direct and indirect energy-related emissions by manufacturing service providers. It is based on data collected internally and publicly available conversion factors and relates to the 2021 fiscal year.
• 2) This figure is based on internally established criteria, which are described in the explanatory notes. The figure relates to the 2020 calendar year and takes into account the following application areas: automotive, LED, induction cookers, servers, renewable energy (wind, photovoltaic) and cell phone chargers as well as drives. CO2 savings are calculated based on the potential savings generated by technologies in which semiconductors are used. The CO2 savings are allocated based on Infineon's market share, semiconductor share, and the lifetime of the technologies concerned, based on internal and external experts' estimations. Despite the fact that carbon footprint calculations are subject to imprecision due to the complex issues involved, the results are nevertheless clear.

For further reading

Institutional Investor Relations contacts

Alexander Foltin

Executive Vice President Finance, Treasury & Investor Relations

+49 89 234-23766 alexander.foltin@infineon.com

Isabell Diel

Manager Investor Relations

+49 89 234-38297 isabell.diel@infineon.com

Alexander Groschke

Director Investor Relations

+49 89 234-38348 alexander.groschke@infineon.com

Daniel Györy

Senior Director Investor Relations

+49 89 234-35078 daniel.gyoery@infineon.com

Holger Schmidt

Director Investor Relations

+49 89 234-22332 holger.schmidt@infineon.com