Infineon Technologies AG — Investor Presentation 2021

May 4, 2021

Second Quarter FY 2021 Quarterly Update

Infineon Technologies AG Investor Relations

Infineon at a glance

Addressing long-term high-growth trends

• › IoT (edge comp., data center, 5G, sensing, connectivity)
• › electro-mobility
• › assisted driving, autonomous driving
• › energy efficiency, renewables, EV infrastructure
• › security

Illustrative aggregated FY20 revenue by segment

• Automotive (ATV)
• Industrial Power Control (IPC)
• Power & Sensor Systems (PSS)
• Connected Secure Systems (CSS)

Financials Illustrative aggregated FY20 revenue by product category

Illustrative aggregated FY20 revenue including contribution from Cypress of ~€1,900m from 1 Oct 2019 through 30 Sep 2020

Illustrative aggregated FY20 revenue of ~€9,600m by target application

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

* Renesas acquired Integrated Device Technology in March 2019. Both companies were combined as Renesas in the 2019 ranking.

• 1) Based on or includes research from Omdia: Annual 2001-2020 Semiconductor Market Share Competitive Landscaping Tool – Q4 2020. March 2021.
• 2) Based on or includes research from Omdia: Power Semiconductor Market Share Database – 2020. September 2020. Results are not an endorsement of Infineon Technologies AG. Any reliance on these results is at the third party's own risk.

Infineon offers a unique portfolio that links the real and the digital world

Sense: sensors Compute: microcontrollers, memories Actuate: power semiconductors Connectivity: Wi-Fi, Bluetooth, USB

	Outlook Q3 FY21*	Outlook FY21*
Revenue	€2.6bn – €2.9bn	~ €11.0bn +/- 3% (prev.: ~ €10.8bn +/- 5%)
Segment Result Margin	At the mid-point of the revenue guidance: ~ 18%	At the mid-point of the revenue guidance: ~ 18% (prev.: ~17.5%)
Investments in FY21		~ €1.6bn
D&A in FY21		€1.5bn – €1.6bn**
Free cash flow in FY21		> €1.2bn (prev.: > €800m)

* Based on an assumed average exchange rate of \$1.20 for €1.00

** Including the effects of the purchase price allocation for Cypress and, to a lesser extent, International Rectifier

Reaping of synergies on track

Expected integration and restructuring costs equivalent to ~1x cost synergies one-off over time.

* Expected cost synergies of €180m p.a. gradually ramping up over approximately three years after closing (16 April 2020).

	Target Operating Model Infineon financial performance to approach targets as Cypress integration progresses
Revenue growth	9%+
Segment Result Margin	19%
Investment-to-sales	13%

Design-win at an Asian OEM: Infineon semiconductors worth more than €500 in an upper mid-range EV platform with SAE L2 automation

Infineon expands the application range of its MEMS microphones into automotive

XENSIV™ IM67D130A MEMS microphone

• › The newly launched IM67D130A MEMS microphone enables the use of sound as a complementary sensor for
• improved speech recognition
• advanced driver assistance systems
• › The outstanding acoustic characteristics allow the microphone to capture distortion-free audio signals in loud environments for
• interior applications: hands-free systems, emergency calls, in-cabin communication, active noise cancellation
• exterior applications: siren detection, road condition recognition

Infineon provides leading-edge DC-DC power conversion for highperformance acceleration boards

Next-generation accelerator boards are driving the need for ultra-high density and robust power conversion solutions

• › Exponential increase in compute power driven by AI training and high-performance compute (HPC) systems resulting in power consumption of > 1 kW per board
• › 15% to 25% higher DC-DC power semiconductor content with every xPU generation
• COGS › Infineon's robust and high-efficiency power management solutions are optimized to support high-performance xPUs, ASICs and SoCs with superior power density
• › Infineon's high-density Smart Power Stages enable system designs with highest power density and quality

Infineon radar turn-key solution addresses IoT market via combining XENSIV™ 60 GHz radar and highly integrated PSoC™ 6 MCU

• › Infineon offers complete turn-key solution comprising of sensor, MCU and software libraries (apps, SDKs)
• › BLE functionality monolithically integrated on MCU
• › Radar sensor remotely controlled via smartphone app
• › IoT target applications: 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
• › optionally: radar solution can perfectly be combined with Infineon's XENSIV™ PAS CO2 sensor for air quality monitoring

Key facts Example application: presence detection

Infineon's new AIROC™ Wi-Fi 6/6E and Bluetooth® 5.2 solutions bring reliable, high-performance connectivity to smart homes

Key facts

• › Infineon is expanding its AIROC™ wireless portfolio of highperformance, reliable and secured offerings with combined Wi-Fi 6/6E and Bluetooth® 5.2 combo capabilities
• › Key advantages of the new solution include:
• Doubled wireless coverage range compared to Wi-Fi 4 and 5
• 40% more coverage than typical Wi-Fi 6/6E solutions
• Over 20% power savings, enabling longer battery life
• Improved connection robustness with enhanced interference mitigation
• Multi-layer security protections enabling a higher level of security for IoT applications

Selected target applications

streaming devices game consoles smart speakers infotainment

ESG: targets and achievements

Our products and innovations together with an efficient production are key elements to deal with climate change

We contribute a CO2 reduction of more than 54 million tons

* The increase in the burden of CO² equivalents can mainly be explained by including manufacturing service providers for the first time into the calculation

Our net ecologic CO2 benefit is equal to…

For explanatory notes see appendix

Infineon will become carbon-neutral by 2030

70% CO² emissions reduction target in 2025 (scope 1 and 2 emissions)

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

Abatement of Perfluorinated Compounds (PFC's)1) is one of the most important measures avoiding direct emissions.

Normalized PFC emissions rate in tons of CO2 equivalent per square meter wafer

Historically, Infineon's normalized emission rate has been below WSC 2020 target of 2.2 in tons of CO2 per square wafer

1) Namely perfluorinated and polyfluorinated carbon compounds, sulfur hexafluoride (SF⁶ ) and nitrogen trifluoride (NF³ )

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	-	07/2020
Euronext Vigeo Eurozone 120 Index Euronext Vigeo Europe 120 Index	Indices member	-	06/2020
Sustainalytics	77 "Outperformer" level	0 to 100	06/2020

Automotive

ATV at a glance

ATV revenue and Segment Result Margin FY20 revenue split by product group

Key customers

• › Improving consumer sentiment around sustainability theme
• › Steady investments in EV charging infrastructure further lowers reservation towards EVs

› Further increase in L1 and L2 penetration expected

› L2+ shipments still at the inital phase

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%
ON Semi	10.0%	Infineon	16.9%	TI	10.3%
Melexis	8.6%	TI	9.8%	ON Semi	7.1%
NXP	7.3%	Microchip	6.9%	Rohm	5.9%

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

Electro-mobility

Infineon provides leading-edge power module technology to top-selling Chinese NEV models

GAC Trumpchi: Aion S EV

NIO: EC6 Scalable Infineon HybridPACK™ Drive portfolio XPeng: P5

• › > 20 BEV platforms in production with Infineon HybridPACK™ Drive
• › > 1m pieces shipped with an unparalleled quality performance
• › Available with Si and SiC chips
• › Scalable module portfolio meets costperformance sweet spots between 120 kW and 250 kW
• › Optimized versions for 400 V and 800V battery voltage

SAIC: MG EZS EV

The incremental content of power semiconductors in xEV is a significant opportunity for Infineon

48 V / Mild Hybrids Full & Plug-in Hybrids and Battery Electric Vehicles \$7 \$0 \$396 \$61 \$17 \$90 \$572 Non-Powertrain* ICE Powertrain xEV Sensors xEV MCUs xEV Power** xEV Others** Total semi BoM \$396 \$38 \$14 \$23 \$330 \$32 \$834 Non-Powertrain* ICE Powertrain xEV Sensors xEV MCUs xEV Power** xEV Others** Total semi BoM 2020 2.3m vehicles 6.1m vehicles 2022e 5.8m vehicles 12.2m vehicles 2025e 18.8m vehicles 21.0m vehicles 2030e 27.3m vehicles 32.0m vehicles

2020 average xEV semiconductor content by degree of electrification

* Non-Powertrain: average semiconductor content in body, chassis, safety and infotainment application segments

** "power" includes voltage regulators and ASIC; "others" include opto, small signal discretes, memory

Sources: Infineon; based on or includes content supplied by IHS Markit, Automotive Group: Alternative Propulsion Forecast. July 2020; Strategy Analytics: Automotive Semiconductor Demand Forecast 2018-2027 and Automotive Sensor Demand 2018-2027. July 2020

Automated Driving

Radar/Lidar modules and sensor fusion will grab the lion's share of semiconductor BoM in ADAS/AD-equipped cars

Incremental average semiconductor content per car by level of automation at the given years

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 Sources: Strategy Analytics: Automated Driving Semiconductor Market Estimate. August 2020; Infineon.

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

Infineon AURIX™ revenue development over time

Sources: Infineon; Strategy Analytics: Automotive Semiconductor Demand Forecast. February 2020. Covering Infineon target markets; excl. body, comfort, infotainment.

Strong microcontroller footprint in next-generation high-volume platforms

Infineon's Power Strategy

Infineon's portfolio covers the entire range of power and frequency

* excluding drivers and control ICs

Raised forecast: dubling the revenue in FY21 – more than half of the incremental growth contributed by automotive

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™		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

Traditional wire sawing wastes ~3/4 of the raw material

The supplier cuts the boule into 350 µm thick wafers thereby losing almost half of the material as kerf. The resulting wafers are processed and ground to ~100 µm before finishing them. Thereby losing another half of the material.

~¾ of raw material lost

Current status of SiC device manufacturing Phase 1: boule splitting in volume prod. starting FY22

We source boules and use our splitting technology to cut it into wafers. The process is kerf-free and therefore losses are minimal. The resulting 350 µm thick wafers are processed according to the current process flow.

Raw material losses reduced by half

Boule splitting plus wafer twinning or advanced boule splitting quadruples output out of a given boule

The starting material are either wafer from the phase 1 boule splitting process or sourced wafer. The 350 µm thick wafer is processed and instead of grinding it down to 100 µm the lower part is split off and processed again.

Combining boule and wafer twinning minimal raw material losses

Phase 2: wafer twinning Phase 3: advanced boule splitting

The advanced boule splitting results in thin wafers that can be processed directly.

Most efficient process with minimal raw material losses

Second generation (2nd Gen.) CoolSiC™ Trench MOSFET will increase the addressable market

SystemPlus Consulting: SiC Transistor Comparison 2020. November 2020

Industrial Power Control

IPC at a glance

IPC revenue and Segment Result Margin FY20 revenue split by product group

Key customers

ABB	ALSTOM	BOMBARDIER	CD CRRC	Danfoss	E4GN
COLDWIND	R Inovance	Midea	OMRON	Rockwell Automation	Schneider
SEMIKRON innovation + service	SIEMENS	SUNGRØW	TOSHIBA	Vestas	YASKAWA

Applications (% of FY20 segment revenue)	Market Outlook for CY21
Automation and Drives ~30%	› Industrial Drives recovering in high single digits with demand growing mainly in GC region
Renewables ~24%	› Wind: installations forecasted to increase to all-time-high › PV: market forecast continuously corrected upward
~16%	› Catch-up of delayed purchases and energy efficiency incentive programs will drive growth
Transportation ~13%	› Diminished COVID-related travel activities caused further push-out of construction of passenger trains and e-Busses
Power Infrastructure ~9%	› Growing demand in EV charging infrastructure, Industrial UPS and energy storage systems › Delays in Transmission & Distribution projects
Others 8%	› Growth driven by general market recovery

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

Discrete IGBTs IPMs 2019 total market: \$1.44bn			2019 total market: \$1.59bn			IGBT modules1) 2019 total market: \$3.31bn
Infineon	32.5%	Mitsubishi		32.7%	Infineon	35.6%
Fuji Electric	11.7%	ON Semi	17.9%		Mitsubishi	11.9%
ON Semi	7.9%	Infineon	11.5%		Fuji Electric	10.5%
Toshiba	6.1%	Fuji Electric	7.8%		Semikron	7.3%
Mitsubishi	5.7%	Semikron	7.0%		Vincotech	3.5%
STMicro	5.4%	ROHM Semi	4.2%		Hitachi	3.1%
Littelfuse	4.7%	Sanken Electric	2.9%		Danfoss	2.5%
Renesas	4.5%	STMicro	2.4%		Starpower	2.5%
MagnaChip	3.7%	Hangzhou Silan	1.1%		Toshiba	2.4%
Hangzhou Silan	2.2%	Jilin Sino-Micro	0.8%		ABB Semi	1.8%

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 2020

Infineon serves all applications in the field of renewable energy

Onshore Offshore HVDC**

• › Application: Full Converter & Partial/DFIG* converter based wind turbine
• › Output: 1 MW 6 MW

• › Power semi content: €2,000 €3,250 per MW

• › Application: residential, commercial and utilityscale PV plants

• › Output: 1 kW 200 kW
• › Power semi content: €2,500 €5,000 per MW

*DFIG – Doubly fed induction generator ** HVDC - High-voltage direct current transmission

• › Application: Full Converter based wind turbine
• › Output: 3 MW 14 MW

• › Power semi content: €3,250 €3,500 per MW

• › Application: HVDC VSC

• › Output: 100 MW 4 GW
• › Power semi content: €5,200 €18,000 per MW

String inverter Central inverter

• › Application: utility-scale PV plants
• › Output: 600 kW 1,250 kW
• › Power semi content: €2,000 €3,000 per MW

We are the #1 semiconductor enabler of renewable energies

Source: World Energy Outlook 2020, Average annual solar PV and wind capacity additions in the Sustainable Development Scenario to 2030 p. 109

Enabling Technologies

• › Reduces System Size
• › Reduced power losses up to 50% compared to a traditional IGBT

Average annual solar PV and wind capacity additions* All leading renewable energy players are our customers*

	PV inverter		Wind
1	Huawei		1 Siemens/Gamesa	
2	Sungrow		2 Vestas	
3	SMA		3 Goldwind	
4	TBEA Sunoasis		4 GE	
5	Wuxi Sineng		5 Enercon	
6	ABB		6 Envision	
7	Kstar		7 Nordex	
8	Goodwe		8 Senvion	
9	Growatt		9 United Power	
10	Power Electr.		10 Mingyang	

› Increased lifetime of IGBT Modules › Highest reliability for remote places

Energy storage is essential to further deploy decentral and renewable energy generation

• › Decentralization of power generation
• › Peak shaving of energy generation and energy consumption
• › Limited capacity and flexibility of today's grids
• › Reduction of standby cost of fossil power plants

~€3,200 of power semiconductor content per MW of installed energy storage capacity2)

1) International Energy Agency: World Energy Outlook 2020, p. 248; variable renewables consist of solar and wind energy. 2) Infineon estimate

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

Power & Sensor Systems

PSS at a glance

PSS revenue and Segment Result Margin FY20 revenue split by product group

Key customers

Applications (% of FY20 segment revenue)	Market Outlook for CY21
Computing ~20%	› Acceleration towards cloud computing to continue › Pandemic-driven stay-at-home and WFH effects continue to favor notebook sales
Communication ~9%	› In general, long-term drivers due to 5G still intact › However, trade tensions generate some uncertainty around speed of roll-out in China and other regions
Smartphones ~19%	› Strong rebound expected driven mainly by economic recovery and migration towards 5G phones
Consumer ~20%	› Consumer electronics, including e.g. game consoles, clear beneficiaries from stay-at-home
Industrial ~23%	› Automotive and other industrial segments show strong recovery. However, automotive production has taken hits from chip shortages
	› Battery-powered tools continue to show strong momentum
* does not sum up to 100% due to other applications not shown here

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
• › space

PSS – Power

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

* Renesas acquired Integrated Device Technology in March 2019. Both companies were combined as Renesas in 2019.

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

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

Infineon is well positioned to benefit from the conversion to the de-facto standard USB Type-C

• opportunities › Infineon USB business dominated by USB Type-C and USB Type-C PD
• › USB Type-C PD in automotive is a nascent segment with good growth opportunities
• › USB Type-C PD offers revenue synergies for Infineon in AC-DC chargers and adapters

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

PSS – RF and Sensing

Main applications addressed by PSS sensors portfolio

Sensor markets targeted by PSS

Source: Infineon estimates

3D ToF image sensor market Environmental sensor market*

devices and automotive. Source: Infineon estimates

MEMS microphone

• › Strong first quarter and bounce back of the smartphone market in CY 2021 contribute to good MEMS microphone demand growth.
• › Hearables are also a major growth driver. Popular features like active noise cancellation or transparent hearing require 4 to 9 microphones. Traditional wired headsets included only 1 microphone.

3D ToF image sensor

› Consumer market in non-phone category is showing increasing interest for implementation of 3D ToF cameras in latest electronic equipment. This is driven by applications like service robots, multicopter and AR headsets for education, leisure or medical.

Radar ICs (24 GHz and 60 GHz only)

• › Home appliance will drive 60 GHz radar growth in the consumer market (smart lamp, speaker, thermostat a.o.).
• › 60 GHz radar successfully launched as replacement for passive-infrared approach getting traction in the market.
• › New applications like In-cabin-monitoring systems and smart trunk opener will fuel strong growth in automotive.

Environmental sensors

• › Trend for indoor air quality measurement due to health, comfort and energy saving reasons.
• › XENSIV™ PAS CO2 sensor supports reducing the risk of virus transmission by ensuring better and safe indoor air quality.
• › Smart home & smart building market are showing huge interest in usage of CO2 sensors in different applications.

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

Based on or includes research from Omdia: MEMS Microphones Dice Market Shares 2020. October 2020

Technological progression of Infineon XENSIV™ MEMS microphones

› Serves applications like gaming, virtual e-Commerce, 3D online education, facial recognition.

Characteristics:

• › Long range up to 10 meters
• › High resolution up to 40k depth points
• › Lowest power, reduction of 40% at the imager
• › Accurate and robust depth data under all light conditions
• › Smallest 3D camera; 35% smaller footprint
• › Lowest system BoM due to high integrated CMOS image sensor and Infineon VCSEL driver component

Infineon XENSIV™ PAS CO2 sensor enables highly-precise CO² measuring and will ramp-up for mass market in mid 2021

Photoacoustic spectroscopy (PAS) technology based on Infineon's high-sensitivity 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 and fast design-to-market

All XENSIV™ PAS CO2 sensor components are developed in-house, enabling full control of the system

Connected Secure Systems

CSS at a glance

Key customers

Market outlook for CSS division's target applications – brightening but foundry supply constraints limit upside potential in the near-term

Applications (% of FY20 segment revenue)		Market Outlook for CY21 (not considering supply constraints)
	Industrial IoT	› Growth driven by general market recovery in industrial automation and energy efficiency incentive programs for home appliances
Industrial		› New features and technologies enter production and proliferate across several devices
and Consumer IoT		› Increasing penetration rate of eSIM Automotive driven by increasing connectivity requirements › Connectivity technologies to improve in-car user experience
	~70% Gaming	› Market growth driven by launch of new console models
	Wearables	› New product launches expected to boost demand
		› Further implementation of low-power processing and connectivity technologies across new models
Payment, ID, Ticketing	Payment	› High demand for contactless payment solutions expected to continue
~30%	Identification	› Prolonged restrictions on international travel expected to further affect the issuance of passports, partially compensated by a major eID project roll-out

Infineon remains top player in its target markets: security ICs, Wi-Fi standalone ICs

Infineon is focusing on wearables and IoT but not addressing routers, PCs,

ABI Research: Smart Card and Embedded Security IC Technologies. October 2020

ABI Research: Wireless Connectivity Technology Segmentation and Addressable Markets – Q3 2020 Update. July 2020

CSS empowers the world to easily connect through smart and trusted solutions

Compute, connectivity, security and software ecosystem capabilities enable Infineon to address a growing market driven by the IoT

MCUs – Dynamic market environment; CSS is well set to tackle trends in IoT & Consumer as well as Industrial markets

Wi-Fi – Market driven by a dynamic environment of specifications; CSS is addressing main growth trends

Bluetooth – Market driven by further penetration of Bluetooth use cases across devices; CSS focus topics enable this development

Security – Several long-term key trends driving value, generating emerging opportunities, shaping CSS' focus in the security field

Significant synergy potential of a combined company product portfolio

Selected financial figures

Group financial performance

Revenue* and gross margin development

^{274 220 379 489 470} 1,986 2,174 2,490 2,631 2,700 34.5% 27.0% 31.8% 37.4% 36.0% Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Revenue Segment Result Gross Margin › Cyclical dynamics coinciding with a structural upturn

› Demand is outstripping supply in almost all semiconductor areas

› Many products are on allocation and inventories are lean

› Accelerating adoption rates for structural drivers like electro-mobility and IoT

* Consolidation of Cypress revenue as of 16 April 2020. ** For definition see notes

[EUR m]

Automotive (ATV)

• › Positive revenue contribution from almost all areas particular strong demand for electric vehicles components
• › Stable margin: negative impacts of Austin power outage and of annual price adjustments compensated by lower underutilization charges
• › Scarce manufacturing capacities, in particular at foundries and subcons, put a speed limit to the automotive recovery.
• › EV and ADAS remain very robust structural trends
• * 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.

Industrial Power Control (IPC)

• › Sequential revenue decline in transportation compensated by revenue increases in all other application areas
• › Renewables positive momentum continues
• › Market conditions for industrial applications continue to brighten
• › Home appliances remain strong, driven by pent-up demand and energy-saving regulations

Power & Sensor Systems (PSS)

• › Strong demand in multiple end markets, from power tools to telecom servers, overcompensating the seasonal decline in smartphone
• › Supply constraints, in particular from foundries, capped further upside
• › Digitalization leads to disruptive innovations in consumer and industrial applications smart and "sensorified" devices, edge computing, 5G networks and cloud data centers provide attractive growth opportunities

Connected Secure Systems (CSS)

• › CSS severely affected by supply constraints power outage in Austin adds further tightness to the scarce foundry capacities
• › Increased demand for security solutions e.g. contactless payment and device authentication, dampened revenue impact
• › Unabated secular trend towards smart connected devices vibrant demand especially for general-purpose microcontrollers and connectivity (Wi-Fi/Bluetooth)

* 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.

RoCE and adjusted RoCE

Earnings-per-share and total cash return

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

Gross margin and Opex

Working Capital, in particular trade working capital components

* For definition please see page "Notes".

** 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.

D&A impacted by Cypress consolidation and PPA

* For definition please see page "Notes".

Liquidity development

› Q4 FY20: early repayment (USD 555m) of bank debt incurred for the Cypress acquisition.

• › Q1 FY21: Gross debt reduced by 174m EUR repayment and impact of weaker US-dollar on USD-denominated debt. Net debt: improvement driven by strong free cash flow and, to some extent, currency effects.
• › Q2 FY21: Gross cash increased, as strong free cash flow more than offset dividend payment; gross debt only driven by stronger US-Dollar impacting USD-denominated debt

Maturity profile

€750 €750 €750 €650 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 \$350 \$235 \$555 [EUR m; US\$ m; nominal values] €500 €600 €600 Eurobond (Mar 2022) Term loans (Sep 2022, Sep 2023, Jun 2024) Corporate bonds under the EMTN program (Jun 2023, Jun 2026, Jun 2029, Jun 2032) US PP Notes (Apr 2024, Apr 2026, Apr 2028) Hybrid bonds* (Jan 2025, Jan 2028) \$1,110 \$1,110 \$350

Graph excludes pre-existing Cypress convertibles of ~\$382m repayment value, maturing latest 2022, and additional debt with maturities between 2021 and 2023 totaling €9m. * 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.

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
IRFPolP	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

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
xEV	all degrees of vehicle electrification (EV, HEV, PHEV)

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.

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
6 May 2021	Nuremberg  virtual	IPC Business Update Call along with virtual PCIM trade show
19 May 2021	Tarrytown  virtual	Berenberg US Conference
25 May 2021	New York  virtual	rd 3 Annual Mizuho Auto Technology Seminar
26 May 2021	Milan  virtual	Equita 16th European Conference
27 May 2021	London  virtual	JPMorgan European TMT Conference
1 Jun 2021	New York  virtual	Cowen TMT Conference
8 – 9 Jun 2021	Paris  virtual	23rd Exane BNP Paribas European CEO Conference
10 Jun 2021	San Francisco  virtual	Bank of America Global Technology Conference
16 Jun 2021	Berlin  virtual	dbAccess Berlin Conference
17 Jun 2021	London  virtual	GS European Digital Economy Conference
1 Jul 2021	Barcelona // virtual	PSS Business Update Call along with MWC trade show
3 Aug 2021*		Q3 FY21 Results
1 Sep 2021	Chicago  virtual	Jefferies Annual Semiconductor Conference
2 Sep 2021	Frankfurt  virtual	Commerzbank Corporate Conference
2 Sep 2021	London  virtual	dbAccess European TMT Conference
4/5 Oct 2021	London // virtual	Infineon Capital Markets Day "IFX Day 2021"

* preliminary

• 1) This figure considers manufacturing, transportation, function cars, flights, materials, chemicals, water/waste water, direct emissions, energy consumption, waste, etc. and is based on internally collected data and externally available conversion factors. All data relate to the 2020 fiscal year. Manufacturing service providers are not included.
• 2) This figure is based on internally established criteria, which are explained in the explanatory notes. The figure relates to the calendar year 2019 and considers the following fields of application: automotive, LED, induction cookers, server, renewable energy (wind, photovoltaic), mobile phone chargers as well as drives. 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 the technologies concerned, based on internal and external experts' estimations.
• 3) Calculation based on average polycrystalline photovoltaic cells and the average yearly solar radiation of central Germany.
• 4) Based on the average electricity consumption of private households in Germany and official energy conversion factors.
• 5) Calculation based on average passenger capacity and direct flight route using externally available data and conversion factors.

Notes

• 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 = NOPAT / Capital Employed = ('Income from continuing operations' – 'financial income' – 'financial expense') / 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 ratio - Definition

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

For further reading

IPC Business Update Call Dr. Peter Wawer 6 May 2021

https://www.infineon.com/2021ipccall

ATV Business Update Call Peter Schiefer 5 October 2020

https://www.infineon.com/2020atvcall

Sustainability Report 2020 23 November 2020

https://www.infineon.com/sustainability_report

CSS Business Update Call Thomas Rosteck 3 March 2021

https://www.infineon.com/2021csscall

Alexander Foltin

Executive Vice President Finance, Treasury & Investor Relations

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

Joachim Binder

Distinguished Engineer Investor Relations

+49 89 234-25649 joachim.binder@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

Holger Schmidt

Director Investor Relations

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