Infineon Technologies AG

Investor Presentation • May 4, 2023

Second Quarter FY 2023 Quarterly Update

Infineon Technologies AG Investor Relations

1

Infineon at a glance

Addressing long-term high-growth trends

FY22 revenue by segment

• Automotive (ATV)
• Green Industrial Power (GIP)
• Power & Sensor Systems (PSS)
• Connected Secure Systems (CSS)

Financials FY22 revenue by product category

Infineon is a global player, clear #1 in power semiconductors, and ranked #5 in the overall microcontroller market

Samsung Intel Qualcomm SK Hynix Broadcom Limited Micron Technology AMD NVIDIA Texas Instr. MediaTek Apple STMicroelectronics Infineon NXP Analog Devices 11.3% 10.2% 6.2% 5.7% 4.5% 4.5% 4.0% 3.5% 3.2% 3.1% 2.9% 2.7% 2.6% 2.2% 2.0% Infineon onsemi STMicro Mitsubishi Fuji Electric Toshiba Vishay Renesas Nexperia Rohm 19.7% 7.5% 6.6% 5.2% 4.3% 4.0% 3.6% 2.5% 2.4% 2.4% STMicro Microchip Renesas NXP Infineon Texas Instr. GigaDevice Nuvoton Samsung Silicon Labs 16.7% 16.2% 16.0% 16.0% 12.6% 6.5% 1.7% 1.5% 1.2% 1.2% MCU suppliers 2022 total market: USD 27.9bn¹ Power discretes and modules 2021 total market: USD 27.5bn² Semiconductor suppliers 2022 total market: USD 596bn1

¹ Based on or includes research from Omdia: Annual 2001-2022 Semiconductor Market Share Competitive Landscaping Tool – 4Q22. March 2023. ² Based on or includes research from Omdia: Power Semiconductor Market Share Database – 2021 – Final V2. October 2022.

Results are not an endorsement of Infineon Technologies AG. Any reliance on these results is at the third party's own risk.

Well-balanced portfolio among segments and key applications, highest growth coming from Decarbonization and Digitalization

FY22 revenue of €14,218m by segment and key application

Undisputed power systems leadership mastering all three key materials

Leadership in Power Systems across all materials and technologies

Silicon Diode – MOSFET – IGBT – Driver – Controller

Silicon carbide Diode – MOSFET

Gallium nitride HEMT – Driver

Infineon and Continental to cooperate in the development of server-based vehicle E/E (electrical/electronic) architectures

Continental using Infineon's AURIX™ TC4x MCU for its zonal platform

• ‒ Organized and efficient E/E architecture with central highperformance computers (HPC) and a few, powerful zone control units (ZCU) instead of up to a 100+ individual control units
• ‒ The AURIX™ TC4x was designed for usage in ZCUs and as support unit in HPCs
• ‒ Architecture allows essential software programs to be almost constantly on stand-by
• ‒ State-of-the-art cybersecurity functions, developed according to the ISO/SAE 21434-certified process
• ‒ RRAM (Resistive Random Access Memory) technology allows performance expansion, power consumption
• reduction, and cost improvement ‒ In the E/E architecture of the future, a ZCU bundles all electronic and electrical connections in a local section of the vehicle
  • ‒ Bundling the software components centrally will thereby increase cybersecurity and updatability

Infineon awarded for BYD's new E/E architecture based on zonal platform

Design-win for three zones

‒ New E/E architecture enabling efficient MCU setup and smart power distribution

‒ Intelligent power devices (IPDs): PROFET™ +2 high-side switch

P2S solution levering combined Infineon product advantages

Infineon and Delta to cooperate on EVs; joint innovation lab to be set up in Taiwan

• ‒ Infineon and Delta Electronics, Inc. are expanding their long-term cooperation from industrial to automotive applications
• ‒ Joint innovation activities to provide more efficient and higher-density solutions for the fast-growing market of EVs
• ‒ The agreement covers a wide range of components such as high-voltage and low-voltage discretes and modules as well as MCUs to be used in EV drivetrain applications such as traction inverters, DC-DC converters and on-board chargers
• ‒ In addition, both parties agreed to set up a joint innovation lab for automotive applications. The Delta-Infineon Automotive Innovation Center will be co-managed by both companies
• ‒ Over the past 25 years Delta and Infineon have successfully collaborated in the area of industrial products

Decarbonization and digitalization are accelerating structural growth of Infineon's target markets

Infineon serving all target markets as leader in Power Systems and IoT

Supported by …

Leader in power systems: Infineon enabling decarbonization by delivering maximum value to customers with holistic system approach

Electric vehicle Inverter – BMS – OBC – DC/DC Solar inverter DC/DC – DC/AC

Server power AC/DC – DC/DC – PoL – Power stage

PoL (point of load): PMIC + Driver IC + MOSFETs | Power stage: Driver IC + MOSFETs

Infineon at the core of IoT – Driving digitalization by serving strongly growing multi-application markets

Consumer IoT Industrial IoT Automotive IoT

Products: MCU – Connectivity (Wi-Fi, BLE, NFC) – Sensors – Security – Power supply & switches

Upgraded Target Operating Model: Committing to more ambitious financial goals and being the sustainability leader

Target Operating Model

through cycle

Revenue growth	>10%	Previously 9%+
Segment Result Margin	25%	19%
Adj. Free Cash Flow Margin1	10-15%	Invest-to-sales 13%

Sustainability leader CO² neutrality 2030

¹ Excluding major frontend buildings

Double-digit growth ahead – five key applications account for ~60% of growth; well-diversified divisional split

Upgraded Target Operating Model: Significant margin expansion through the cycle

Free Cash Flow generation increasing over the cycle, driven by profitable growth and better asset efficiency

• ‒ Accretive investments into high organic growth
• ‒ Operating cash flow expected to outgrow investments
• ‒ Differentiated in-house manufacturing complemented by ~40% outsourcing share over time
• ‒ FY23-27: ~€3.5bn cum. investments into major frontend buildings

Adj. Free Cash Flow target: 10-15% of sales, excl. major frontend buildings

Putting it all together – Upgraded Target Operating Model leads to superior value creation

10-15%

25%

Target Operating Model

through cycle

Revenue growth >10%

Segment Result Margin

Adj. Free Cash Flow Margin¹

Reported RoCE to reach 2x cost-of-capital level

Outlook for Q3 FY23 and FY23

	Outlook Q3 FY231	Outlook FY231
Revenue	~€4.0bn	€16.2bn +/-€300m
Adj. Gross Margin		~47%
Segment Result Margin	~26%	~27%
FCF/adj. FCF		~€1.1bn/~€1.8bn
Investments		~€3.0bn
D&A		~€1.8bn2

¹ Based on an assumed average exchange rate of \$1.10 for €1.00

2 Including the amortization of around 450 million Euros from purchase price allocations

ESG: Targets and achievements

Our 2030 carbon neutrality goal is aligned with the Paris Climate Agreement's 1.5 °C target

On the road to carbon neutrality³ we achieved significant milestones by

• ‒ Using green electricity in Europe and North America
• ‒ Completing abatement system in Kulim

Infineon's CO² target³ by 2025 and 2030

Net CO² emissions in million tons of CO² equivalents

Net ecological benefit: CO² emissions reduction of more than 97 million tons

1, 2, 3 For further explanation see "ESG footnotes" in the appendix

External recognitions confirm our engagement in contributing to a sustainable society

	Rating/Score	Scale	Date
MSCI ESG	AA	CCC to AAA	05/2022
CDP	A- climate scoring B water scoring	F to A	12/2022
Ecovadis	99th percentile "Platinum" award	0 to 100	02/2022
Dow Jones Sustainability™ Index	83 Dow Jones Sustainability™ World and Europe Index listing	0 to 100	11/2022
Ethibel Sustainability Index "Excellence Europe"	Index member	–
ISS ESG Corporate Rating	B Prime Status	D- to A+	01/2021
FTSE4Good Index	Index member	–
Euronext Vigeo Eurozone 120 Index Euronext Vigeo Europe 120 Index	Indices member	–
Sustainalytics	Top ESG performer	–	01/2022

Infineon's wide bandgap strategy

30% market share target in SiC by end of decade underpinned by significant capacity expansion

Infineon is well positioned for strong SiC market growth

Steep ramp enables market share gains

Villach Kulim

SiC momentum further accelerating: Significant new design-wins in auto, continuous leadership in industrial applications

With its comprehensive SiC strategy Infineon is mastering all key success factors

SiC raw material supply

• ‒ 4 qualified SiC wafer and boule suppliers – more to come
• ‒ Cold Split technology increases productivity, especially in 8 inch

Superior trench technology

• ‒ 1 2 generations ahead of competition
• ‒ 30% more chips per wafer than planar

Packaging portfolio

• ‒ Best-in-class in-house packaging solutions
• ‒ New .XT technology for highest power density

Deep system understanding

• ‒ Decades of experience in automotive and industrial power
• ‒ Broadest portfolio: Off-the-shelf plus customized solutions

GaN market accelerating, driven by key power applications

Yole: Power GaN Report 2022 & Compound Semiconductor Market Monitor-Module I Q4 2022.

GaN expected to be the preferred technology in multiple core applications by 2030, different transition paths shaping up

GaN tipping point reached/in sight			GaN	transition coming up
			2020	2030				2020	2030
Charger		HV			Low-power motor		DCDC
		DCDC			control		DCDC
Server		HV			Residential		HV
On-board charger		HV			Solar		DCDC
				Si SiC GaN				More applications likely to transition to GaN	over time

Strong position to offer all relevant power semiconductor technologies creates clear customer benefits

GaN Systems: a leading GaN player across application understanding, product portfolio, customer access and IP

Broad lineup of devices and packages, featuring fully embedded power die packaging

Joining forces and adding complementary strengths creates a winning formula for the GaN market

Combined platform features leading GaN IP and the industry's strongest R&D force, to speed up time-to-market 100 150 200 250 300 350 400 Leverage ability to scale learnings and significantly accelerate roadmap No. of patent families in GaN power Combined team of ~450 GaN experts Combined R&D budget high doubledigit USD m p.a.

for shorter time-to-market

Source: Infineon analysis

0

50

Foundry Peer 1 Peer 2

Best-in-class application know-how is critical to creating completely new and improved systems

Example: Different topologies for a Solar inverter

Strong engagement with market-shaping customers will support GaN market leadership

GaN Systems acquisition positions Infineon to be a leading GaN player

Leading
patent
portfolio
for GaN –
>350 patent
families

~450 strong GaN team high double-digit USD m GaN R&D p.a.

Best-in-class application understanding incl. automotive

Leading IP & strongest R&D force Leveraging foundry + IDM advantages

We own key IP and all frontend process steps

We combine

foundry partnerships and dualsite in-house production, ready for 8''

We target

market position

a leading

Automotive

ATV at a glance

ATV revenue and Segment Result Margin FY22 revenue split by product group

Key customers

· APTIV·	Astemo	(ન) BOSCH	(ontinental >>	DENSO
НУШПОЯІ MOTOR GROUP	Valeo	veoneer	vitesco TECHNOLOGIES	7 F

-3%

7%

17%

27%

37%

0 1.000 2.000 3.000 4.000 5.000 6.000 7.000

Automotive semiconductor market expected to continue its growth journey

Applications	Market Outlook for CY23
Automotive	‒ Ongoing risks of demand perturbations due to ‒ Macroeconomic slowdown ‒ Weaker consumer confidence ‒ However, demand overhang and OEM order backlog should stabilize car production ‒ Semiconductor shortage expected to ease further leading to more balanced demand/supply condition
e-mobility	‒ Positive Momentum for xEVs expected to continue: Consumer demand, more non-premium models, build-up of battery capacities, denser charging infrastructure, regulations and incentives ‒ More normalized pricing environment could increase BEV production and semi content growth ‒ New incentive programs in China ‒ Price reduction by OEMs
Autonomous driving	‒ Growth of L1, L2 and L2+ expected to continue ‒ L3 shipments will grow from a rather small base supported by additional L3 model launches ‒ First small-scale commercial robotaxi projects in operation; roll-out in more and more cities

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

Automotive semiconductors (2022 total market: \$59.4bn; +27.4% y-y)

• ‒ Total market grew by 27.4% y-y, reaching all-time-high of \$59.4bn; market growth clearly supported by content-percar growth
• ‒ #1 in power semiconductors due to high exposure in xEV
• ‒ #2 in MCUs for the first time ever, driven by outstanding success in AURIX™ design-win momentum
• ‒ Undisputed #1 in automotive NOR Flash memory ICs

Sensors MCUs Power semiconductors

TechInsights (formerly Strategy Analytics): Automotive Semiconductor Vendor Market Shares. March 2023.

Electromobility

In CY22, xEV (PHEV + BEV) sales crossed the 10m mark driven by China with unit growth of 82% y-y; global monthly run rate now >1m

In units k Penetration

Based on or includes content supplied by S&P Global Mobility. January 2023; EV Volumes. January 2023.

Infineon addresses 100% of power semiconductors for all drivetrains; BEV semi content expected to grow from ~\$1,000 to ~\$1,500 by 2028

¹ Based on TechInsights: Automotive Semiconductor Demand Forecast 2019 - 2029. March 2023; Infineon. "power" includes voltage regulators, ADCs and ASICs. ² Due to missing ICE engine in BEV the weighted incremental semiconductor content for PHEV and BEV starts below the "~\$500" line.

Infineon offers the most comprehensive system solutions addressing all xEV segments: pure EVs and all types of hybrids

Infineon offers a full portfolio for the control loop of an electric car

In 5 years, every second car will be fully or partially electrified; SiC to take lead over silicon in the 2027-2030 period

Based on or includes content supplied by S&P Global Mobility. September 2022; Infineon

Around 20 design-wins in SiC across all auto applications: traction inverter, OBC, DC-DC

World's leading IGBT supplier Latest CoolSiC™ design-wins including traction inverter, OBC, DC-DC Renault Volkswagen Cadillac SAIC Mini Nissan NIO Hyundai (front axle) 2 EU OEMs US OEM German Luxury OEM Genesis (front axle) 2 Chinese Tier 1s SAIC Zeekr Xpeng Hozon 2 EU Tier 1s Stellantis Li Auto Japanese OEM 6 Distribution partners Hyundai Changan Genesis 4 US OEMs

Rapid execution of our BMS strategy showing great success

Infineon's comprehensive BMS portfolio Selected balancing IC customers

PMIC	Wireless communications ICs	High-volume OEM
Transceiver	Battery monitoring ICs
MCU		Premium car OEM
F-RAM
Power switch		NETA Auto
Pressure sensor
Gas sensor		Chinese bus OEM
Current sensor
Auxiliaries for thermal management (e.g., fan, pump etc.)		Japanese OEM
MOSFET	Motor control IC Security IC

BMS BoM of ~ €100 per vehicle

Automated Driving

The new 28nm CMOS radar from Infineon enables autonomous truck driving for L4 truck platforms

Design-win details

• ‒ 4D imaging radar for autonomous driving truck platform
• ‒ Infineon's highest-resolution radar sensor ICs enable the next level of autonomous driving
• ‒ Triple-digit million € design-win over lifetime

Key product information

• ‒ CMOS 28 nm CTRX radar sensor family
• ‒ 76 GHz 81 GHz MMIC
• ‒ Best-in-class RF performance
• ‒ Zero-defect quality enables dependable systems
• ‒ Scalability and cascadability enable radar solutions for all SAE levels

Growth of L1/L2/L2+ is the main driver of ADAS semiconductor content until 2027

‒ Standard radar is the technology to detect distance and speed

‒ High-resolution radar significantly improves angle and classification

Market research companies; Infineon

2021 2027

The number of radar systems is expected to grow by 24% annually, driven by new applications and increasing penetration

User experience meets electrical/electronic (E/E) architecture

Software-defined cars will become a reality through architectural transformation; Infineon's MCUs to win big here

Game changing innovations from Infineon are defining the digital cockpit of tomorrow

Internal and external MEMS microphones

Example #1: Active noise cancellation Example #2: Emergency vehicle detection

Industry-leading, premium lighting technology offers enhanced user experience on the road

Key facts

• ‒ Infineon driver IC controls each of the 16K µLEDs individually with outstanding luminous intensity
• ‒ Lead customer: EU premium OEM ("Best light ever!")
• ‒ Start of production: early 2023

Nichia high-definition micro-pixel light source (HD µPLS)

Courtesy: Nichia Courtesy: Audi AG

Infineon's suite of motor control ICs lead the way to address fastgrowing comfort features

• ‒ Comfort features making further inroads into cars; e.g., seats in a mid-range car feature about seven motors today
• ‒ Up to ~€80 semiconductor BoM per vehicle for comfort features
• ‒ Infineon's leading suite of motor control ICs fits ideally for all comfort applications

‒ PMIC

‒ SBC

‒ Driver IC

• ‒ MCU
• ‒ Bridge IC
• ‒ MOSFET
• ‒ Software

On average ~7 motors per seat

Green Industrial Power

Effective 1 April 2023, Industrial Power Control (IPC) has become Green Industrial Power (GIP)

Emphasizes our contribution to decarbonization, electrification and energy efficiency

Sets a mark for the paradigm shift towards rapid growth and highly dynamic applications

Fosters pride and engages external stakeholders

We are committed to serve all industrial applications and customers as trusted partner

GIP at a glance

GIP revenue and Segment Result Margin FY22 revenue split by product group

Key customers

ABB		ALSTOM CD CRRC		COLDWIND INOVANCE	A (G) LG		OMRON
Cockwell	Schneider		S DANFOSS	SMA		SUNGRON Vestas YASKAWA

0 200 400 600 800 1.000 1.200 1.400 1.600 1.800 2.000

Despite weak macro sentiment, GIP market outlook remains positive. Strong demand in decarbonization related applications

Applications

% of FY22 segment revenue Market Outlook for CY23

~35% Automation and Drives	‒ Analysts expect market pullback in 2H/2023 due to decline in demand, but no contraction due to ongoing energy transition and energy efficiency trends ‒ Customers see still strong demand overall, for China demand seems to slow down (increased stock levels)
~26% Renewable Energy Generation	‒ Growth rates remain strong for global PV installations (43% YoY); demand for green hydrogen boost outlook ‒ Wind project delays in China pushed demand from 2022 to 2023 (51% YoY growth of global wind installations), project push outs in Europe into 2024/2025 impair growth in 2023
~10% Power Infrastructure	‒ Growth in EV charging infrastructure is expected to remain strong supported by government push programs ‒ Further growth of ESS (34% YoY) and T&D required to capture renewable energy generated
~17% Home Appliance	‒ Overall market is weak, semiconductor demand more stable in areas linked to progressing inverterization ‒ Residential AirCon demand slowed down, China government measures expected to induce stabilization in 2H/2023; heat pump demand remains strong
~5% Transportation	‒ Strong growth opportunities for CAV and OBC (electrification) ‒ Traction: growth for locomotives & metro to stay flat, demand for high-speed trains still weak, but slightly ramps
~7% Others	‒ Long-term positive outlook driven by general trend of electrification in emerging applications (e.g. e-aviation, e-marine)

Clear leader in discrete IGBTs and IGBT modules

1 Including MOSFET-based IPMs and IGBT-based IPMs

2 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 2021 – Final V2. October 2022. Results are not an endorsement of Infineon Technologies AG. Any reliance on these results is at the third party's own risk.

Infineon is the key enabler for Power Systems that are needed at every step of the entire power transformation chain

Renewable energy generation #1 semi enabler

powering ~50% of currently installed wind/solar capacity

Energy infrastructure #1 semi enabler for ~2/3 of grid infrastructure incl. EV charging

Energy conversion and usage #1 semi enabler

broadest portfolio covering all verticals leader in power density and efficiency #1 in vehicle electrification

Based on or includes research from Omdia: Power Discrete and Module Market Tracker – 2021. September 2022. Infineon market model.

GIP markets accelerate growth – Enabling green energy and driving decarbonization

Huge potential along entire green energy chain until 2030 according to IEA Net Zero scenario

Photovoltaic	+4,200 GW
Wind power	+2,400 GW

Generation	Infrastructure	Consumption
------------	----------------	-------------

Grid network	\$600bn annual investments
Grid storage	+660 GW	H Fuel Cell1 2
EV Charging	+32m chargers	eAviation eMarine
Electrolysis	+720 GW (pipeline: 240 GW)

Heat pump	+420m units
Fuel Cell1 H 2	+200k FC EV +200k FC Trucks

Note: Based on Net Zero Scenario (IEA) | Source: IEA, ¹ Internal Analysis

Green energy generation provides large business opportunities

100 40 600 5,000 60 1,000 EV Charging Heat pump Fuel Cell [EUR per installation] 0 2,000 1,500 2,500 500 3,500 5,000 3,500 2,000 0 1000 2000 3000 4000 5000 6000 Fossil, nuclear, hydro Wind Solar Grid-scale battery storage Electrolysis [EUR per MW] Additions in 2021¹ CAGR 2022 – 30 94 150 6 <1 <1m 20m 19% 22% 50% 77%² 33% 16% 5k 42% [GW] [GW] [GW] [GW] [inst.] [inst.] [inst.] Mainly IGBT Mainly SiC

Power semiconductor content by application

1 IEA: Net Zero by 2050 – A Roadmap for the Global Energy Sector. May 2021; Sector Tracking reports September 2022; internal Analysis | 2 Based on 240 GW pipeline, >100% based on NZE requirements

Infineon is manifesting its leading position in the industrial SiC market with above market 5y CAGR and strong outlook

¹ Excluding Auto Drivetrain

Power & Sensor Systems

PSS at a glance

PSS revenue and Segment Result Margin FY22 revenue split by product group

Key customers

amazon	CISCO	(D&LL) )	CONNELTA	S S ERICSSON	Google
hD	Trakita	Panasonic	SAMSUNG	solaredge

0 500 1.000 1.500 2.000 2.500 3.000 3.500 4.000 4.500

Weakness in all verticals except industrial persists in 2023

¹ 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

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
• ‒ Gaming
• ‒ TV sets
• ‒ Smart home

• ‒ Power supplies
• ‒ EV on-board charger
• ‒ Charging infrastructure
• ‒ PV inverter
• ‒ Power tools
• ‒ Lighting
• ‒ Industry 4.0
• ‒ Aerospace

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PSS – Power

Infineon is the clear leader in MOSFETs with further market share gains, additional growth potential in power ICs

15.3%

¹ Discrete Power MOSFET market includes automotive MOSFETs, Si Power MOSFETs, SiC Power MOSFETs, Si Protected MOSFETs and GaN Power Transistors | ² Power IC market includes automotive power ICs. ³ Analog Devices acquired Maxim in August 2021 | ⁴ Renesas acquired Dialog Semiconductor in August 2021. | Based on or includes research from Omdia: Power Semiconductor Market Share Database 2021 – Final V3. December 2022. | Results are not an endorsement of Infineon Technologies AG. Any reliance on these results is at the third party's own risk.

2023-05-04 Copyright © Infineon Technologies AG 2023. All rights reserved. 68

Server market including AI hyperscalers offers attractive growth potential

Server market units as well as BoM expected to grow

Exponential increase in AI Training & Networking 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

Enterprise Telecom & Edge Hyperscalers AI enabled Hyperscalers

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

Based on or includes research from Omdia: Data Center Server Tracker – 3Q22 Database. September 2022 Results are not an endorsement of Infineon Technologies AG. Any reliance on these results is at the third party's own risk.

Infineon components enable best power usage effectiveness for data centers

Supermicro collaborates with Infineon on green computing

Supermicro MicroBlade servers contain …

• ‒ Infineon's power stages provide the best power efficiency in the industry
• ‒ Infineon's power IC's high temperature tolerance and excellent reliability enables operations at high ambient temperature → less energy-intense external cooling needed

Example

In one use case¹ , the end customer of Supermicro's MicroBlade server saved 56% in data center space utilization, 45% in capex and \$13m/year in electricity. This led to customer's data center power usage effectiveness (PUE) of 1.061

An ideal PUE value is 1.0, which means that all the power required for a data center is in the actual computing devices, not in overhead costs such as cooling or power conversion. According to recent research² , IT and data center managers reported an average annual PUE ratio of 1.57 at their largest data centers.

¹ Source: https://www.supermicro.com/CaseStudies/CaseStudy\_Fortune100.pdf

² Statista Research Department: Data center average annual power usage effectiveness (PUE) worldwide 2007-2021. July 21, 2022.

PSS is a key enabler for residential solar systems

• ‒ Innovative MOSFET transistors for MV & HV applications in all technologies: OptiMOS™, CoolMOS™, CoolSiC™, CoolGaN™
• ‒ Isolated gate driver and GaN driver ICs for high system level efficiencies, excellent power density and consistent system robustness
• ‒ Coolset integrated power stages for auxilliary power supply
• ‒ Digital isolaters enables safe signal transfer

Full portfolio breadth for solar Enabling residential solar energy systems

Partnering with leading customers of the industry

Securing customer and market growth by entering into long-term strategic agreements Growing above industry CAGR with the leading customers of the industry

Transition to 5G drives demand in power semis for antennas and power supplies

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

PSS – RF and Sensing

Main applications addressed by PSS sensors portfolio

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
• ‒ CO² /virus risk reduction

Sensor markets targeted by PSS offer attractive growth potential

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

MEMS microphone market Radar IC market (24 GHz and 60 GHz only)

Environmental sensor market¹ 3D ToF image sensor market

Infineon as market leader has significantly increased the distance to #2

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

Based on or includes research from Omdia: MEMS Microphones Report Dice Market Shares 2022. October 2022. Results are not an endorsement of Infineon Technologies AG. Any reliance on these results is at the third party's own risk.

2.8% 3.2% 8.4% 35.6% 45.0% NJRC Omron MEMSensing Knowles Infineon total market: 6.7bn units

2021 MEMS die market share

New XENSIV™ MEMS microphone with very low power consumption

• ‒ New PDM (pulse density modulation) microphone is based on Infineon's latest Sealed Dual Membrane MEMS technology
• ‒ Offers unmatched SNR of 69 dB(A) that enables crystal-clear audio experience
• ‒ Needs half of current consumption compared with available models on the market with similar performance
• ‒ This leads to a long battery life and is therefore perfect suited for hearable applications like true wireless earbuds, over-ear headsets, and hearing enhancement devices

Expanding our portfolio towards H2 (hydrogen) sensors to address battery protection and the entire fuel cell ecosystem

H² sensor key use cases

H² gas leakage sensor for fuel cell applications

H² gas leakage sensor for infrastructure applications

H² outgasing sensor for battery thermal runaway detection

H² sensor details

Based on Infineon's MEMS technology

H² sensor key target applications

Currently in evaluation with around 20 customers

Connected Secure Systems

CSS at a glance

Key customers

Market outlook is affected by macroeconomic conditions; risks continue especially for consumer segments

Applications

% of FY22 segment revenue Market Outlook for CY23

	Industrial IoT	‒ Growth in industrial IoT is expected to stretch into CY23 based existing order backlog despite geopolitical and economic uncertainties
	Home Appliances	‒ Overall demand slowing down and returning to prepandemic levels. Although penetration of smart appliances increases, deterioration of customer sentiment might limit growth
~67%	Smart Home	‒ Launch of Matter 1.0 standard and focus on energy management systems counteracted by risks driven by overall consumer sentiment
Industrial and Consumer IoT	Health & Lifestyle	‒ Market risks driven by overall consumer sentiment might outweigh potential growth in areas like smart watches
	Media, Game & Compute	‒ Main consumer markets are trending downwards due to overall macroeconomic environment and reduced consumer sentiment, while enterprise product categories remain rather flat
	Automotive	‒ Market outlook for 2023 has improved driven by the easing of China's zero-Covid policy, while risks of demand destruction due to worsening macroeconomic conditions persist
~33%	Payment	‒ The market is assumed to grow as supply constraints continue to ease
Smart cards	Identification	‒ Positive trend expected driven by recovery in passports issuance as well as project roll-out for other eDocuments

Infineon remains top player in security ICs

Security ICs (excl. NFC controllers; excl. NFC eSE)

2021 total market: \$3.2bn

Security ICs (excl. NFC controllers; excl. NFC eSE)

2021 by application

ABI Research: Smart Card and Embedded Security IC Technologies. October 2022.

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

Infineon is enabling the 'IoT at a fingertip' with robust and reliable touch solutions and reconfirming Cypress revenue synergies

Capacitive sense buttons Capacitive sense slider Metal proximity Touchless gesture control Infineon CAPSENSE™ technology in volume production in a wide range of applications 5 th generation of CAPSENSE™ controller in advanced analog/mixed-signal technology available >6 Billion conventional buttons replaced >100 Patents filed for touch solutions Infineon as the leader¹ in Touch-HMI inherited through Cypress acquisition We are fully on track to reach or even overachieve the announced Cypress revenue synergy targets FY22e FY22 FY25e FY25 current status FY28e FY28 current status €1bn €1.5bn Revenue synergies from customer access and cross-selling P2S revenue synergies

Synergy achievement/projection incl. design-wins and P2S initiatives

Infineon estimate

1

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.

Selected financial figures

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

Group financial performance

¹ See notes for definition

Automotive (ATV)

• ‒ Record revenues and segment result ATV crossed the 2bn EUR quarterly turnover mark for the first time ever
• ‒ All product groups, especially microcontrollers, specialty memories, and power components contribute to this success
• ‒ ATV continues to be the global market leader in automotive power, and moves up to a second place position in automotive microcontrollers¹
• ‒ The exposure to the structural megatrends e-mobility, ADAS and new E/E architectures supports our business' resilience

¹TechInsights (formerly Strategy Analytics): Automotive Semiconductor Vendor Market Shares 2022. April 2023

Green Industrial Power (GIP)

• ‒ The division has been renamed "Green Industrial Power" (GIP), originally IPC, to reflect above-average growth in the fields of renewable energy and energy infrastructure
• ‒ In Q2 FY23, revenue and segment result reached an all-time high all product groups contributed to this achievement
• ‒ Decarbonization-related demand overcompensates macro-driven weakness in home appliances; general-purpose drives going back to long-term growth rates

Power & Sensor Systems (PSS)

• ‒ Revenue step down was driven by the well-known softness in consumer, computing and communications applications
• ‒ Higher idle costs weigh on margin development
• ‒ Underlying long-term trends remain strong, especially demand for gallium nitride-based solutions

Connected Secure Systems (CSS)

• ‒ Record revenue and segment result
• ‒ Revenue growth primarily driven by payment applications, embedded security and general-purpose microcontrollers
• ‒ Strong segment result was supported by pricing and higher volumes overcompensating negative currency developments
• ‒ Demand for smartcard ICs remains high long-term growth opportunities for consumer as well as industrial IoT applications undiminished

Gross margin and Opex

Therein non-segment result charges [EUR m]

82 78	81	76	81
----------	----	----	----	--

Adjusted gross margin

[EUR m]

Investments, Depreciation & Amortization and Free Cash Flow

Working Capital, in particular trade working capital components

Trade receivables Trade payables

Inventories

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.

Return on capital employed

Historical development

Earnings-per-share and total cash return

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

Total cash return to shareholders via dividends

• ‒ Dividend for FY22: €0.32 per share
• ‒ Dividend payout of €417m for FY22

Liquidity development

Historical liquidity development

[EUR m]

Maturity profile

Maturity profile from 2023 to 2034

[EUR m; US\$ m; nominal values]

Graph excludes additional debt totaling €2m maturing in 2023.

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 investment-grade rating are the basis for through-cycle flexibility

	Financial Policy Targets	Status Quo (LTM 31 March 2023)
Gross Cash1	€1bn + at least 10% of revenues → €2.5bn	€1bn + 15% of revenues → €3.4bn
Gross Debt2	≤ 2.0x EBITDA	1.0x EBITDA
Comfortable liquidity position	‒ Flexibility for financing operating activities and investments through the cycle ‒ Cushion for net pension liabilities and contingent liabilities
Balanced debt position	‒ Gross debt target commensurate with investment-grade rating ‒ De-leveraging and refinancing after Cypress acquisition completed ahead of schedule
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

Disclaimer

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 S&P Global reports, data and information referenced in this document:

The S&P Global reports, data and information referenced herein (the "S&P Global Materials") are the copyrighted property of S&P Global Inc. and its subsidiaries ("S&P Global") and represent data, research, opinions or viewpoints published by S&P Global, and are not representations of fact. The S&P Global 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 S&P Global Materials are subject to change without notice and neither S&P Global nor, as a consequence, Infineon have any duty or responsibility to update the S&P Global Materials or this publication. Moreover, while the S&P Global 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. S&P Global and the trademarks used in the Data, if any, are trademarks of S&P Global. Other trademarks appearing in the S&P Global Materials are the property of S&P Global or their respective owners.

Glossary

AC	alternating current
ACC	adaptive cruise control
AD	automated driving
ADAS	advanced driver assistance system
ADC	analog-to-digital converter
AEB	autonomous emergency braking
AI	artificial intelligence
AR/VR	augmented/virtual reality
ASIC	application-specific integrated circuit
BEV	battery electric vehicle
BLE	bluetooth low energy
BMS	battery management system
BoM	bill of Materials
BPA	bisphenol A
CAV	commercial, construction and agricultural vehicles
CMOS	complementary metal-oxide-semiconductor
DC	direct current
E/E	electrical/electronic architecture
ECU	electronical control unit
eSE	embedded secure element
eSIM	embedded subscriber identity module
ESS	energy storage systems
EV	electric vehicle
FCEV	full cell electric vehicle
FHEV/MHEV	full/mild hybrid electric vehicle
FoM	figure of merit
F-RAM	ferroelectric memory
GaN	gallium nitride
HMI	human machine interaction
HV	high voltage
HVAC	heating, ventilation, air conditioning
IC	integrated circuit
ICE	internal combustion engine

IGBT	insulated gate bipolar transistor
IoT	internet of things
IPM	intelligent power module
LED	light-emitting diode
MCU	microcontroller unit
MEMS	micro electro-machanical systems
MHA	major home appliances
MIMO	multiple input, multiple output
ML	machine learning
MNO	mobile network operator
MOSFET	metal-oxide silicon field-effect transistor
MV	medium voltage
OBC	on-board charger
OEM	original equipment manufacturer
P2S	Infineon's strategic product-to-system approach
PD	power delivery
PHEV	plug-in hybrid electric vehicle
PMIC	power management integrated circuits
PoL	point of load
PSoC	programmable system-on-chip
PUE	power usage effectiveness
PV	photovoltaic
RAC	risk-adjusted capital
RAM	random-access memory
RF	radio frequency
SBC	system basis chip
Si	silicon
SiC	silicon carbide
SiGe	silicon-germanium
SNR	signal-to-noise ratio
SWP	single wire protocol
ToF	time-of-flight
WBG	wide band gap, specifically referring to SiC and GaN based devices

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) =	'reimbursement obligations')1 ('Trade receivables' - /'revenue' x 90

Order backlog = The total amount of orders received regardless of their current status

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.
• 3) Carbon neutrality is defined in terms of Scope 1 and Scope 2 emissions.

Financial calendar

Date	Event	Location
10 May 2023	Berenberg Madrid Seminar	Madrid
11 May 2023	GIP business update call along with PCIM trade show
12 May 2023	Stifel German Corporate Conference	Frankfurt
15 – 16 May 2023	J.P. Morgan European Technology, Media and Telecoms Conference	London
17 May 2023	UBS Best of Europe Conference	virtual
23 May 2023	Equita European Conference	Milan
31 May 2023	Goldman Sachs Global Semis Conference	New York
6 June 2023	Berenberg Innovation Conference	Zurich
6 – 7 June 2023	24th CEO Conference of BNP Paribas Exane	Paris
12 June 2023	Future of the auto industry Conference, Newstreet Research	virtual
20 June 2023	dbAccess German Corporate Conference	Frankfurt
21 June 2023	BofA EU TMT Conference	London
3 August 20231	Q3 FY23 results
15 November 20231	Q4 FY23 and FY 2023 results

¹ Preliminary

Institutional Investor Relations contacts

Alexander Foltin

Executive Vice President Finance, Treasury & Investor Relations

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

Daniel Györy

Senior Director Investor Relations

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

Alexander Groschke

Director Investor Relations

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

Am Campeon 1 – 15 885579 Neubiberg

Visitor address

Germany

Isabell Diel

Senior Manager Investor Relations

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

Holger Schmidt

Director Investor Relations

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