Infineon Technologies AG — Investor Presentation 2021

Feb 4, 2021

First Quarter FY 2021 Quarterly Update

Infineon Technologies AG Investor Relations

Infineon at a glance

› IoT (edge comp., data center, 5G, sensing, connectivity)

› electro-mobility

› assisted driving, autonomous driving

› energy efficiency, renewables, EV infrastructure

› security

Addressing long-term high-growth trends 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

* including contribution from Cypress

** 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 2001-2019 Semiconductor Market Share Competitive Landscaping Tool – Q4 2019 v2. March 2020

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

	Outlook Q2 FY21*	Outlook FY21*
Revenue	€2.5bn – €2.8bn	~ €10.8bn +/- 5% (prev.: ~ €10.5bn +/- 5%)
Segment Result Margin	At the mid-point of the revenue guidance: ~16.5%	At the mid-point of the revenue guidance: ~17.5% (prev.: ~16.5%)
Investments in FY21	~€1.6bn (prev.: €1.4bn – €1.5bn)
D&A in FY21	€1.5bn – €1.6bn**
Free cash flow in FY21	> €800m (prev.: > €700m)

• * Based on an assumed average exchange rate of \$1.20 for €1.00; previously \$1.15 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

Planned ramp-up of cost synergies

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%

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

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.

Infineon WSC 2020 target Historically, Infineon's normalized emission rate has been below WSC 2020 target of 2.2 in tons of CO2 per square wafer 2016 2017 2018 2019 2020

Normalized PFC emissions rate in tons of CO2 equivalent per square meter 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	02/2020
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 (2019 total market: \$37.2bn)

• › New #1 in the total market post acquisition of Cypress
• › Solid #1 in power despite xEV subsidies cut in China in H2 CY19
• › Undisputed #1 in automotive NOR Flash memory
• › Fostering #2 in sensors (from 10.4%CY12 to 13.5%CY19)
• › Significant market share gain in microcontroller both organically (strong demand for AURIX™) and via Cypress acquisition

Sensors		Microcontrollers			Power semiconductors
Bosch	14.1%	NXP	27.2%	Infineon	25.5%
Infineon	13.5%	Renesas	27.0%	STMicro	13.9%
ON Semi	8.0%	Infineon	16.2%	Bosch	9.1%
NXP	7.0%	TI	9.8%	TI	8.2%
Melexis	6.7%	Microchip	6.6%	ON Semi	5.4%

Source: Strategy Analytics: Automotive Semiconductor Vendor Market Shares v2. May 2020. The market shares shown here are the combined market shares of Infineon and Cypress based on their individual figures.

Electro-mobility

Driven by triple-digit y-y growth in most countries, xEV penetration rate tripled from 2019 to 2020 – years earlier than prev. expected

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

Li Auto: LiXiang One portfolio

Nio: ES8, ES6, EC6

Scalable Infineon HybridPACK™ Drive

• › > 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

XPeng: P7

Weltmeister: EX5

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

2020 average xEV semiconductor content by degree of electrification

48 V / Mild Hybrids Full & Plug-in Hybrids and Battery Electric Vehicles

* 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

Source: 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

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

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

Source: 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

SiC is switching gears: industrial still holds the biggest share, but about half of the incremental revenue 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™ Diode	CoolSiC™ Hybrid		CoolSiC™ MOSFET
	Discrete	Discrete	Module	Discrete	IPM	Module	Discrete	Discrete	Discrete	Module
voltages
600 V
650 V								Expected in 2021
1200 V										Exp. in 2021
1700 V
	Continuous expansion of portfolio

Infineon expands supply base for SiC boules with GT Advanced Technologies

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

Source: 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

Applications (% of FY20 segment revenue)	Market Outlook for CY21
Automation and Drives ~30%	› Industrial Drives expected to recover in low-single-digits with some upside potential from pent-up demand
Renewables ~24%	› Wind: installations forecasted to increase to all-time-high › PV: installations to stabilize on high level
~16%	› Catch-up of delayed purchases and energy efficiency incentive programs will drive growth
Transportation ~13%	› Diminished COVID-related travel activities caused pushed-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

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

Infineon serves all major players for PV inverters and wind turbines

IPC revenue in renewables

Infineon is powering all leading renewable energy players*

* Infineon is serving the top-10 of each category but not necessarily as a sole supplier.

Source: 1) by shipped capacity in MW: based on or includes content supplied by IHS Markit, Technology Group: PV Inverter Market Tracker – Q3 2020. October 2020.

2) WoodmacKenzie: Wind Turbine OEM Market Share. November 2020.

3) International Energy Agency: World Energy Outlook 2020, p. 224.

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)

Source: 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%	› Catch-up of delayed purchases could lead to market pick-up › However, new lock-downs could dampen consumer confidence › Game consoles clear beneficiaries from stay-at-home
Industrial ~23% * does not sum up to 100% due to other applications not shown here	› Automotive and other industrial segments show signs of recovery › Battery-powered tools continue to show strong momentum

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

Computing Communications Smartphones Consumer Industrial

• › base stations
• › backhaul cellular infrastructure
• › 5G massive MIMO

• › telecommunication servers

• › 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. Source: 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*

Different market dynamics of selected PSS sensors

MEMS microphone

• › New headset features like active noise cancellation or transparent hearing require 4 to 9 microphones. Traditional wired headsets had only one microphone.
• › Global smartphone MEMS microphone market rebounded in Q3 CY20. Upward track expected to maintain in coming quarters.

3D ToF image sensor

Radar ICs (24 GHz and 60 GHz only)

• › Home appliance will drive 60 GHz radar growth in the consumer market (thermostats, speakers 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 auto segment

Environmental sensors

› 3D ToF image sensor enables newest generation of vacuum cleaning robots like Xiaomi Mijia 1T smart vacuum cleaner with "smart eyes" capabilities to accurately realize and avoid obstacles in all three dimensions.

• › Market entry in CO² sensor market with first revenues expected in FY21.
• › XENSIV™ PAS CO2 sensors support reducing the risk of virus transmission by enabling better and clean indoor air quality.

Sweeping success of our XENSIV™ MEMS microphones driven by unparalleled audio characteristics catapulted Infineon to new #1

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

New 3D ToF image sensor with improved long range to be launched in Q3 FY21

› 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

Connected Secure Systems

CSS at a glance

Key customers

2021-02-04 Copyright © Infineon Technologies AG 2021. All rights reserved. 56

Market outlook for CSS division's target applications

Applications (% of FY20 segment revenue)		Market Outlook for CY21
Payment, ID,	Payment	› High demand for contactless payment solutions expected to continue
Ticketing ~30%	Identification	› Prolonged restrictions on international travel expected to further affect especially the issuance of passports
		› Return to growth, however lower level than previously expected › New features and technologies enter production and proliferate across models
Industrial and		› Increasing penetration rate of eSIM Automotive driven by increasing connectivity requirements › Connectivity technologies to improve in-car user experience
Consumer IoT ~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

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

Connected Secure Systems – comprehensive systems for a secure, connected world

Positioned to benefit from major growth trends Top player in key markets

• › Security, connectivity and compute are the essential ingredients for IoT
• › Digitalization unlocks new opportunities
• › CSS supports other divisions with the integration of security, connectivity, and compute

Payment, identification, ticketing Industrial and consumer IoT

• › Payment (credit and debit cards)
• › Electronic passports & ID cards
• › Transport tickets

• › Access cards

• › Industrial application

• › Infrastructure
• › Mobility and connected cars
• › Home appliances

# 1 in security ICs1,2	# 5 in Wi-Fi standalone ICs3
# 1 in payment1	# 3 in Bluetooth Standalone3

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

2) excl. NFC Controllers; excl. NFC embedded Secure Element

3) ABI Research: Wireless Connectivity Technology Segmentation and Addressable Markets. November 2019.

• › Consumer electronics, e.g. games consoles, audio entertainment
• › Notebooks, PCs and servers
• › Smartphones and accessories

CSS owns the key ingredients to address the high-growth IoT market: security solutions, wireless connectivity and processing

Infineon offers the entire system for IoT − unlocking new markets and applications

Selected financial figures

Strong presence in all regions; well-balanced customer portfolio; no customer represents more than 10% of total sales

Group financial performance

Revenue* and gross margin development

› Strong start into FY21

• › Demand in several areas, most notably microcontrollers and IoT products, is outstripping supply
• › Covid and trade tensions remain significant uncertainties
• › Accelerating adoption rates for structural drivers like electro-mobility and IoT
• › Integration of Cypress is progressing

Book-to-bill**

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

Automotive (ATV)

• › Global car markets continue to rebound, particular strength in components for electric vehicles
• › Current semiconductor shortage: foundry capacity, especially for microcontrollers is a limiting factor
• › Significant reduction in underutilization charges and non-recurring effects drive strong margin improvement

* 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.

• › Renewables positive momentum continues
• › Home appliances remain strong, driven by pent-up demand and energy-saving regulations
• › Industrial drives moved sideways, transportation continues to be hampered by low travel activities
• › Segment Result Margin decline reflects adverse currency movements and unfavorable product mix

Power & Sensor Systems (PSS)

• › Remote workforce and stay-at-home regulations continue to boost demand
• › Strong demand for low-voltage switches (power tools) and MEMS microphones (smartphones & accessories)
• › Demand for the server components remains flat, but at high levels

Connected Secure Systems (CSS)

• › CSS affected by supply constraints on the foundry side
• › Vibrant demand especially for general-purpose microcontrollers and Wi-Fi components
• › Secular trend towards connected devices continues to be unabated

* 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

Opex development

Selling, General & Administration Research & Development

[EUR m]

13 18 79 68 60

10.6%10.8%10.6%10.8%14.5% 63 53 58 77 157 159 151 156 239 10.6%10.8%10.6%10.8%14.5% Q3 FY19Q4Q1 FY20Q2 Q3 R&D % of sales 243 241 ^{321 308} 333 14.8% Q1 FY20 Q2 Q3 Q4 Q1 FY21 [EUR m] Therein non-segment result charges [EUR m] 1 2 8 11 8

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

Investments* Depreciation & Amortization 12.8% 14.5% 16.5% 18.1% 12.8% [EUR m] 826 1,022 1,254 1,099 1,451 ~1.6bn

* For definition please see page "Notes".

Liquidity development

› Q4 FY20: early repayment of one half of the first term loan (USD 555m).

› 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.

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

Note: 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
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
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

Glossary (2 of 2)

IRFPolP	International Rectifier
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
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 memory
	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.

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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
10 – 11 Feb 2021	San Francisco  virtual	Goldman Sachs Technology & Internet Conference
25 Feb 2021	Neubiberg  virtual	Annual General Meeting
1 Mar 2021	virtual	dbAccess Global ESG Conference
3 Mar 2021	Nuremberg  virtual	CSS Call along with embedded World trade show
9 – 10 Mar 2021	London  virtual	UBS Technology One-on-One Virtual Conference
11 Mar 2021	virtual	ODDO BHF 5th Digital TMT Forum
24 Mar 2021	virtual	JPMorgan Fireside Chat
4 May 2021*		Q2 FY21 Results
6 May 2021	Nuremberg  virtual	IPC Call along with PCIM trade show
27 May 2021	London  virtual	JPMorgan European 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
17 Jun 2021	virtual	GS European Digital Economy Conference
1 Jul 2021	Barcelona  virtual	PSS Call along with MWC trade show
3 Aug 2021*		Q3 FY21 Results

* 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

Power Semiconductor Business Update Call Dr. Peter Wawer, Andreas Urschitz 30 Nov 2020

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

ATV Call Peter Schiefer 5 October 2020

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

Sustainability Report 2020 23 November 2020

https://www.infineon.com/sustainability_report

IFX Day 2018 Capital Markets Day London, 12 June 2018

https://www.infineon.com/ifxday\_2018

Institutional Investor Relations contacts

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