Infineon Technologies AG

Investor Presentation • Aug 5, 2024

Third Quarter FY 2024 Quarterly Update

Infineon Technologies AG
Investor Relations

Infineon at a glance

Addressing long-term high-growth trends

Financials

[EUR m]

FY23 revenue by segment

Automotive (ATV)

Green Industrial Power (GIP)
Power \& Sensor Systems (PSS)
Connected Secure Systems (CSS)

FY23 revenue by product category

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

FY23 revenue of $€ 16,309 \mathrm{~m}$ by segment and key application

Infineon is a global player, clear #1 in power semiconductors, and ranked #2 in the overall microcontroller market

Semiconductor suppliers

2023 total global market: USD 544bn ${ }^{1}$

Intel		$9.4 \%$
NVIDIA		$9.0 \%$
Samsung		$8.2 \%$
Qualcomm		$5.7 \%$
Broadcom Limited		$5.2 \%$
SK Hynix		$4.3 \%$
AMD		$4.1 \%$
Apple		$3.4 \%$
Infineon		$3.2 \%$
STMicro		$3.2 \%$

Power discretes and modules
2022 total global market: USD 30.9bn ${ }^{2}$

Infineon		$20.6 \%$
onsemi		$8.8 \%$
STMicro		$7.6 \%$
Mitsubishi		$4.2 \%$
Fuji Electric		$4.0 \%$
Toshiba		$3.5 \%$
Vishay		$3.5 \%$
ROHM		$3.0 \%$
Nexperia		$2.7 \%$
Renesas		$2.0 \%$

Microcontroller suppliers
2023 total global market: USD 28.1bn ${ }^{1}$

STMicro		$18.2 \%$
Infineon		$17.7 \%$
NXP		$17.6 \%$
Renesas		$15.7 \%$
Microchip		$13.5 \%$
Texas Instr.		$4.1 \%$
Nuvoton		$1.8 \%$
CEC Huada		$1.1 \%$
Silicon Lab.		$0.9 \%$
Samsung		$0.9 \%$

Our Target Operating Model: committing to ambitious financial goals and being the sustainability leader

Target Operating Model

through cycle

Revenue growth
$>10 \%$
$\square$ Segment Result Margin
$25 \%$
(4) Adj. Free Cash

Flow Margin ${ }^{1}$
$10-15 \%$

Double-digit growth ahead - five key applications account for $\sim 60 \%$ of growth; well-diversified divisional split

Our 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

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

Outlook for Q4 FY24 and FY24

Revenue	Outlook Q4 FY24 ${ }^{1}$
Adj. Gross Margin	4.0 bn
Segment Result Margin	$\sim 20 \%$
FCF/adj. FCF
Investments
D\&A

Outlook
FY24 ${ }^{1}$
$\sim € 15.0$ bn
low-forties
$\sim 20 \%$
$\sim €-200 \mathrm{~m} / \sim € 1.5 \mathrm{bn}$
€2.8bn
$\sim € 1.9 \mathrm{bn}^{2}$

[^0]
[^0]: ${ }^{1}$ Based on an assumed average exchange rate of $\$ 1.10$ for $€ 1.00$
${ }^{2}$ Including the amortization of around 400 million Euros from purchase price allocations

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 at the core of loT - driving digitalization by serving strongly growing multi-application markets

Consumer loT

Industrial loT

Automotive loT

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

ESG:

Targets and achievements

Our 2030 carbon neutrality goal is aligned with the Paris Climate Agreement's $1.5^{\circ} \mathrm{C}$ target

On the road to carbon neutrality ${ }^{3}$ we achieved significant milestones by

• Using green electricity in Europe and North America and our main sites Kulim and Melaka in Malaysia
• Installation start of PFC abatement system in Austin

Infineon's $\mathrm{CO}{2}$ target ${ }^{3}$ by 2025 and 2030
Net $\mathrm{CO}{2}$ emissions in million tons of $\mathrm{CO}_{2}$ equivalents

CO3
Target FY25
Target FY30

Net ecological benefit: $\mathrm{CO}_{2}$ emissions reduction of more than 113 million tons

[^0]
[^0]: ${ }^{1,2,3}$ For further explanation see "ESG footnotes" in the appendix

External recognitions confirm our engagement in contributing to a sustainable society

Infineon's wide bandgap strategy

With opening Kulim 3, Infineon is on track to becoming the industry's most competitive provider of SiC technology

SiC raw material supplier network

• More than 6 qualified SiC wafer and boule suppliers
• Globally diversified and resilient

Superior trench technology

• $30 \%$ more chips per wafer than planar
• Unmatched reliability with zero field returns
  

Packaging portfolio

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

Deep system understanding

• Decades of experience
• Broadest portfolio: off-the-shelf plus customized solutions
  

World-scale 200-millimeter fab with industry-leading cost position
Resilient setup together with Villach plant

Smart phase-over and ramp-up of 200 mm volume production to enable next level of innovation for customer value with SiC

Expansion of Kulim 3 backed by strong long-term customer commitments

Design-wins: €5bn

Related customer pre-payments: $\sim € 1$ bn

• Phase 2 of Kulim module 3 expansion is backed by numerous customer commitments
• Significant design-wins in automotive and renewable applications
• About €1bn of customer pre-payments contribute to our free cash flow in FY24 and FY25

Unveiling a new performance budget with CoolSiC ${ }^{\text {TM }}$ G2

Figures-of-merit (FOM) comparison: lower is better for energy efficiency optimization

Continuing our leadership in Power Systems with the most comprehensive GaN portfolio

Leading IP \& strongest R\&D force

Leveraging foundry + IDM advantages

We own key IP and all frontend process steps	We combine foundry partner- ships and dual- site in-house production, ready for 200 mm	We target a leading market position

Deaf-in-class application under-
standing
incl. automotive

Infineon's design opportunity pipeline for Gan power in focus applications amounts to more than €3bn

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

More applications likely to transition to GaN over time
Strong position to offer all relevant power semiconductor technologies creates clear customer benefits

Automotive

ATV at a glance

ATV revenue and Segment Result Margin

Key customers

- APTIV・	Astemo	a BorgWarner	(1) BOSCH	(2) (D)	Gintinental	DENSO	FORVIA
HYUNDRI MOTOR GROUP	HEBODR	Mando	A MAGNA	Voleo	veoneer	VUESCC YECHNOLOGIES	(1)

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

Automotive semiconductors (2023 total market: \$69.2bn; +16.5\% y-y)

• Infineon grew by $26 \%$ y-y, gaining 1.0\%-pts of market share to $13.7 \%$, the highest level ever
• Infineon outgrew the market in all regions
• In MCUs, Infineon grew by $44 \%$ y-y (about twice as fast as the market), becoming the new #1
• Continuing #1 position in power semiconductors based on industry's broadest product portfolio
• Undisputed #1 in automotive NOR Flash memory ICs

Sensors

TechInsights: Automotive Semiconductor Vendor Market Shares. March 2024. Sensors: S\&P Global: Automotive Semiconductor Market Share Database. April 2024.

Automotive semiconductor market expected to continue its growth journey even at flat light vehicle production growth

Applications

Market outlook for CY24

Automotive

• Stable vehicle production in 2024
• Vehicle affordability concerns persist, despite recent OEM price cuts
• No major semiconductor shortage expected
• Growth in xEV, albeit at slower rate in Western markets
• High demand in China, including PHEVs and REEVs
• Introduction of affordable BEV models by end of 2024 and 2025 will attract new customer base
• Growth of ADAS/AD continues - also driven by higher xEV share which usually offer higher levels of car autonomy and more advanced E/E architecture platforms
• First small-scale robotaxi projects launched

Several strong content growth drivers for Infineon, even at flat LV production

Several structural trends fueling our growth

xEV

• Strong volume growth of BEVs and PHEVs
• Increasing share of SiC in traction inverters
• Larger batteries lead to higher BoM in BMS

ADAS/AD

• Need for functional safety, redundancy
• More sensors, more computing performance

E/E architecture

• SW-defined cars with higher need for connectivity
• Centralized signal processing by zone computers
• Smart switches for decentralized power distribution

Comfort and premium features

• More loads (motors, heating, cooling etc.)
• Elaborate interior and exterior lighting

Overview of growth vectors until 2030

Infineon is the world leader in automotive semis, serving all key applications and benefiting strongly from content growth

Semiconductor bill-of-material in a car in 2024 and 2030
$[U S D]$

• Semis for drivetrain function (e.g. Inverters, on-board chargers, BMS, etc.)
• Semis for non-drivetrain functions

Based on TechInsights: Global xEV System Semiconductor and Sensor Demand Forecast 2022-2031. May 2024; Infineon

A very broad portfolio with $>300$ product families is backing the market leadership of Infineon in Automotive

Infineon ATV division revenue by product families:

Major categories ${ }^{1}:$ AURIX ${ }^{\text {TM }}$ families, CoolSiC ${ }^{\text {TM }}$, IGBT 750V, IGBT 1200V, MOSFETs, PROFET ${ }^{\text {TM }}$, Radar, TRAVEO ${ }^{\text {TM }}$ - none more than 10\%
Unmatched customer value creation and portfolio resilience
Leading technologies
System competence (P2S)
Broadest portfolio

Number of power MOSFETs per car continues to increase, and drives accelerated growth for the leading portfolio

Examples of MOSFET applications

Latest portfolio with constant innovation
Technologies, packages and voltages

Infineon's revenue growth

• 100 to 180 MOSFETs are used per vehicle in $\sim 90$ different applications in all segments: body, chassis, safety, ADAS/AD, powertrain
• Infineon offers broadest portfolio (>600 products) and eco-system to address specific and high-margin applications:
• embedded control, gate driver, MOSFETs, software, P2S
• entire eco-system with digital twins
• simulation environment (esp. for motor control)
  

Electromobility

Xiaomi SU7 Max: Infineon contributes > 60 different components, incl. 2x HybridPACK ${ }^{\text {TM }}$ Drive G2 CoolSiC ${ }^{\text {TM }} 1200 \mathrm{~V}$ power modules

Infineon provides system solutions with $>60$ different components for more than 10 applications

MCUs, PMICs: AURIX ${ }^{\text {TM }}$ TC3, TRAVEO ${ }^{\text {TM }}$ T2G, and $\mathrm{PSoC}^{\mathrm{TM}}$ for zone controller, ADAS, xEV drivetrain, and suspension
2x HybridPACK ${ }^{\text {TM }}$ Drive G2 CoolSiC ${ }^{\text {TM }} 1200 \mathrm{~V}$ power modules or bare dies and gate drivers for traction inverter in Xiaomi SU7 Max
PROFET ${ }^{\text {TM }}$ for E/E architecture
MOSFETs, system basis chips, others

Infineon's broad product portfolio and system understanding enable higher BoM and allows for compact designs and fast T2M

Infineon inverter reference design, covering up to 95\% of value

Infineon and Swoboda jointly develop high-performance current sensor modules for automotive applications

• The novel core-less sensing technology enables highly miniaturized integrated sensor modules by discarding the bulky core
• Infineon is a leading supplier of core-less sensors

Core-less sensor

• Combining best-in-class core-less current sensor ICs from Infineon with Swoboda's industrialization expertise has enabled the most compact fully encapsulated sensor module for xEV traction inverter application
• The seamless integration with HybridPACK ${ }^{\text {TM }}$ Drive G2 makes it a ready-to-use "zero footprint" leading-edge solution
  

First $\mathrm{Si} / \mathrm{SiC}$ fusion module concept ( $\mathrm{Si}^{2} \mathrm{C}$ ) significantly exceeding performance expectations without adding system complexity

World-scale capacity, unmatched portfolio breadth and our worldwide customer base lead to accelerated growth in SiC

Leading SiC technology and production efficiency

Most scalable SiC auto portfolio

Continued strong SiC design-win momentum

Infineon's extended BMS (battery management system) product portfolio paves the way for an exceptional growth story

Demand for BMS analog frontend ICs driven by BEV battery capacity

Source: S\&P Global Mobility, December 2023

BMS analog frontend IC

Infineon's revenue growth

FY23
FY28

Infineon AURIX ${ }^{\text {TM }}$ TC4x with integrated PPU brings Al-on-the-edge to the battery

Battery cost

Battery health

Charging speed

Safety concerns

Range anxiety

Resale value, residual value

Cloud dependencies (latency, cost, stability)

High computing performance with complex and accurate BMS algorithms

• Al-based battery diagnostic on-the-edge
• temperature model, electro-chemical model
• lithium plating detection
• remaining useful life prediction
• with and without cloud-based updates
• Product-to-System!

Efficient battery cell utilization

• Higher capacity
• Less cells
• Lower battery cost

Faster charging

• Higher user experience

Assure longevity, extended guarantee

• Longer lifetime (in years, in km)
• More charging cycles

Detect and prevent thermal runaway
Accurate battery, health prediction
Trust in resale market

• Higher economic value
  (impacting insurances, fleets, OEMs,
  Tier1s, 2nd life market)

Automated Driving

AURIX ${ }^{\text {TM }}$ MCU is the gold standard for ADAS/AD, control, safety, and high-speed in-vehicle network

Total automotive MCU market development, excl. MPUs and SoCs

TechInsights: Automotive Semiconductor Demand Forecast. October 2023

€19bn MCU design-win volume secured

• Total automotive MCU design-win volume in the last four years exceeded $€ 19$ bn
• Design-wins covering current and next decade ensuring robust and long-lasting growth
• Up to 40 MCUs per vehicle awarded to Infineon
• Strongest momentum in essential MCUs for E/E architecture, ADAS/AD, and xEV
• Around $€ 3$ bn of revenues already in 2023

AURIX ${ }^{\text {TM }}$, TRAVEO ${ }^{\text {TM }}$, and PSoC ${ }^{\text {TM }}$ families

Infineon's revenue growth

FY23
FY28

Growth of L1/L2/L2+ is the main driver of ADAS semiconductor content until 2030

Car production by degree of automation (SAE level)

Radar is essential to meet decisive requirements of ADAS/AD

• Standard radar is the technology to detect distance and speed
• High-resolution radar significantly improves angle and classification

E/E architecture

Infineon strongly benefits from new E/E architectures that drive centralization of data and decentralization of power distribution

E/E architecture in a software-defined vehicle

New E/E architectures lead to more centralized processing of data and signal while more decentralized power distribution.

Components of E/E architecture and corresponding applications addressed by Infineon

High Performance Computing (HPC)	Safety companion MCU for service- oriented SoCs, secure trust anchor, fail-safe power supply
Zone	Zone controller, gateway controller, incl. protocol translation, smart power distribution
Control	Smart real-time mechatronics (e.g. transmission, motor control, power steering, braking), BMS
Complex sensors and actuators	Radar, incl. signal pre-processing, bus connections, dedicated AI accelerators, camera
Simple sensors and actuators	Smart functional ECU (e.g. seat adjustment, power window, central lock, wiper), touch pad

Power distribution becomes a critical aspect of the E/E architecture and the SW-defined vehicle

New applications for intelligent power distribution ...

Power connection \& isolation

Load control \& self protection

Wire protection
Load supply protection
Active during parking

Smart switches are mandatory for SAE L3 and above

• Superiority of semiconductors over fuses and relays:
• Fast failure isolation ( $<500 \mu \mathrm{~s}$ ) and activation of an alternative supply
• Configurable wire protection
• Diagnosis and non-destructive recovery
• Mandatory for SAE levels L3, L4 and L5
• Growth of smart switches per car:
• Volume OEMs: from today's 50 pieces/car towards 200 pieces/car by 2028+
• Innovator OEMs: already 200 pieces/car today
  ... are driving replacement of fuses/relays
  

Infineon's revenue growth

Infineon's revenue growth

Green Industrial Power

GIP at a glance

FY23 revenue split by product group

GIP revenue and Segment Result Margin

Gate driver ICs

Key customers

Clear leader in discrete IGBTs and IGBT modules

Discrete IGBTs

2022 total market: $\$ 2.5$ bn

IPMs ${ }^{1}$

2022 total market: $\$ 2.1$ bn

Mitsubishi	$24.3 \%$
Sanken	$14.3 \%$
onsemi	$13.0 \%$
Infineon	$9.7 \%$
Fuji	$9.2 \%$
Rohm	$4.0 \%$
Hitachi	$3.7 \%$
STMicro	$3.3 \%$
Semikron	$3.2 \%$
Silan	$2.4 \%$

IGBT modules ${ }^{2}$

2022 total market: $\$ 4.4$ bn

Infineon	31.7\%
Mitsubishi	11.9\%
Fuji	11.7\%
Semikron	7.4\%
Starpower	4.3\%
CRRC Times	4.1\%
Vincotech	3.3\%
Hitachi	2.2\%
onsemi	2.2\%
Toshiba	1.7\%

${ }^{1}$ 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 content supplied by Omdia, "Power Semiconductor Market Share Database 2022", Final Version V2 September 2023.
Results are not an endorsement of Infineon Technologies AG. Any reliance on these results is at the third party's own risk.

Power Infrastructure demand remains strong while in major verticals inventory corrections persist

Applications

\% of FY23 segment revenue ${ }^{1}$

	$\sim 26 \%$ Renewable Energy Generation
	$\sim 11 \%$ Power Infrastructure
	$\sim 12 \%$ Transportation
	$\sim 28 \%$ Automation \& Drives
	$\sim 11 \%$ Heating, Ventilation, Air condition
	$\sim 6 \%$ Home Appliance

Market outlook for CY24

• PV installations continue to grow, in 2024 channel inventory limits PV inverter shipments and semi demand
• Wind installations expected to grow 17\% (WM); Semi growth for Wind impaired by increasing share of DFIG technology.
• Healthy demand for UPS (uninterruptible power supply)
• EV Charging demand continues to be on growth track, especially for fast charger infrastructure
• Need for grid expansion drives investments in Transmission \& Distribution and Energy Storage
• Rail market remains positive
• eBus growth trend confirmed, eTruck may be limited by installed charging infrastructure
• Demand recovery expected to start end of CY24, investment confidence still cautious.
• The market remains sluggish, with no signs of an upswing, as excess inventory and weak real estate markets continue to exert downward pressure.
• Weak signals of stabilizing inventory at customers and distributors, but still no strong indication of a demand recovery, suggesting that the market remains uncertain.
  [^0]
  [^0]: ${ }^{1}$ Does not sum up to $100 \%$ due to other applications not shown here

Infineon is offering the industry's highest power density with leading 2000 V SiC modules for grid storage

Infineon chip \& module technology used in the customer application - 62 mm CoolSiC ${ }^{\text {TM }}$ MOSFET module 2000 V

Daihen uses CoolSiC ${ }^{\text {TM }} 2000 \mathrm{~V}$ modules for their innovative unit-type power conditioners for grid storage batteries
"In order to increase the voltage of power conditioners, the circuit configuration of conventional 1200 V devices had become complicated. However, by adopting Infineon's 2000 V SiC modules, we were able to achieve a simplified circuit configuration and control design, thereby reducing development resources and the footprint."
Mr. Akihiro Ohori, General Manager, Development
Department, Energy Management System Division, Daihen.

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

Generation

Note: Based on Net Zero Scenario (IEA) | Source: IEA - World Energy Outlook, October 2023, 1 Internal Analysis

Green energy generation provides large business opportunities

Power semiconductor content by application

[^0]
[^0]: ${ }^{1}$ IEA: World Energy Outlook, October 2023; Sector Tracking reports October 2023; internal Analysis
${ }^{2}$ Based on 270 GW pipeline (midpoint), $>100 \%$ based on NZE requirements of 560GW

EV charging is a key strategic application for Infineon We cover the full ecosystem from AC to high power DC charging

Power \&

Sensor Systems

PSS at a glance

Key customers

Recovery in AI power and smartphones ongoing, in other verticals

Applications

\% of FY23 segment revenue ${ }^{1}$

Market outlook for CY24

• Server market showing YoY growth in CY24, especially benefiting from AI opportunities
• PC shipments are expected to recover during CY24 YoY, but still below pre-pandemic levels
• Total Telco capex and wireless capex growth is forecasted to decline in CY24 vs CY23.
• YoY growth in smartphone shipments expected in CY24. Recovery to have momentum in particular in H2.
  $\sim 24 \%$
  Consumer
• Negative YoY development for residential solar as well as weakness in broader industrial markets. Slowing YoY growth for EV market in 2024

[^0]
[^0]: ${ }^{1}$ Does not sum up to $100 \%$ due to other applications not shown here

Infineon is the clear leader in MOSFETs, additional growth potential in power ICs

Discrete Power MOSFETs ${ }^{1}$

2022 total market: USD 13.1bn

[^0]
[^0]: ${ }^{1}$ 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. Based on or includes research from Omdia: Power Semiconductor Market Share Database 2022. September 2023. | Results are not an endorsement of Infineon Technologies AG. Any reliance on these results is at the third party's own risk.

Average Infineon BOM per AI server about 850 to 1800 USD

USD = potential Infineon content per AI server

For AC/DC, Infineon is addressing the growing power demand of AI and data centers with PSU solutions ranging from $3 \mathrm{~kW}-12 \mathrm{~kW}$

Best-in-class energy efficiency, power density and TCO through Infineon's Dual-phase power modules and backside mounting

Power delivery network

Discrete solution

Equivalent discrete solution

Power design

$<2 \%$ of input power loss ${ }^{2}$

Vertical mounting

Power stage $12 \mathrm{~V} \rightarrow \mathrm{x}$ core voltage

[^0]Dual-phase module with inductor-on-top design

• $2 \%$ efficiency savings ${ }^{3}$
• and up to $30 \%$ more powerful processor ${ }^{4}$

Dual-phase module with inductor-on-top design

• additional $2 \%$ efficiency savings ${ }^{3}$
• and up to $30 \%$ more powerful processor ${ }^{4}$

Only Infineon combination offering best-in-class energy efficiency, power density \& TCO

[^0]: 1 In motherboard interconnections through lateral mounting
2 In motherboard interconnections through vertical mounting

3 Using Infineon's dual-phase modules with an inductor-on-top design compared to an equivalent module solution
4 Can be supplied within the same area through an up to $30 \%$ reduction of the occupation area enabling a current density increase

Better efficiency for Infineon's inductor-on-top vs competitor's power-stage-on-top modules

Patented vertical inductor CoolCore Magnetics technology enables true vertical power delivery in combination with trench OptiMOS ${ }^{\text {TM }}$ MOSFET and is mechanically more robust

Competitor:
power stage cooled

Top Cold Plate

Bottom Cold Plate

Power-stage-on-top module

Total power dissipation	95 W
Maximum PCB temperature	$90^{\circ} \mathrm{C}$

Infineon:

inductor cooled
Top Cold Plate

Optimized pathway
Inductor-on-top module
Benefits
21W less power usage

PCB $5^{\circ} \mathrm{C}$ cooler

Al will be a strong driver of revenue increase for Infineon's server business

In FY24 Al revenue in our server business is expected to be a low-triple digit million amount

We expect to double those revenues in FY25 and to reach EUR 1 bn in 2-3 years

Connected Secure Systems

CSS at a glance

Market demand remains weak across consumer segments influenced by high inventories and continuing macro economic risks

Applications

\% of FY23 segment revenue

Industrial and
Consumer loT

Market outlook for CY24

• Macroeconomic headwinds continue to slow growth. Industry 4.0 and Industrial loT trends persist. The market is expected to bottom out in 2024.
• Weak consumer sentiment constrains growth, driven by macroeconomic uncertainty and high inventory levels, resulting in sluggish demand.
• Sluggish consumer sentiment, exacerbated by macroeconomic risks and elevated inventory levels, suppresses demand.
• Consumer spending risks persist, market recovery yet to materialize.
• PC and smartphone recovery expected later in FY24, driven by macro and sentiment improvements, but no sharp rebound forecasted
• Automotive market is slightly slowing down after better-than-projected development in 2023, as macroeconomic headwinds persist.
• The short-term outlook sees channel inventory digestion from high stock levels across the value chain, while card issuance is assumed to stay rather stable
• Stabilization of market growth after post-Covid peak in ePassport; FY24 demand affected by stock overbuild at the customers

CSS offers a compelling product portfolio and roadmap for loT

Microcontrollers (PSoC ${ }^{\text {TM }}$ and XMC ${ }^{\text {TM }}$ )

• PSoC ${ }^{\text {TM }}$ family for general purpose, XMC ${ }^{\text {TM }}$ family for industrial
• Strength in low power, high performance, and capacitive touch sensing
• Compelling roadmap focused on Al, security, and integrated connectivity
  

AIROC ${ }^{\text {TM }}$ Bluetooth ${ }^{\circledR}$

• Portfolio of standalone and PSoC ${ }^{\text {TM }}$ integrated Bluetooth ${ }^{\circledR}$ and Bluetooth ${ }^{\circledR}$ Low Energy products
• Strong position in wearables, gaming, remote controls, HID, and automotive
• Introducing new products to support the newest smart-home industry standard: Matter
  

AIROC ${ }^{\text {TM }}$ Wi-Fi and Combos

• Wi-Fi standalone and Wi-Fi \& Bluetooth ${ }^{\circledR}$ Combo chips for end devices
• Focus on innovation for loT applications: reliability and power
• Strong leader for battery-operated Wi-Fi
• Recent new product introduced Wi-Fi 6 \& 6E - the first loT-focused product in the brand new 6 GHz band
  

ModusToolbox ${ }^{\text {TM }}$ and Software

• ModusToolbox ${ }^{\text {TM }}$ is a rich embedded software development toolset to accelerate and simplify development for Infineon MCUs, and the core development platform for Infineon software
• Strong set of SW features in MCU and connectivity SDK's
• CIRRENT ${ }^{\text {TM }}$ is a cloud services platform for data-driven improvement of connectivity and delivery of innovative loT services
  

Next-generation PSOC ${ }^{\text {TM }}$ Edge portfolio: Infineon PSOC ${ }^{\text {TM }}$ Edge E81, E83 and E84 microcontroller families

PSOC ${ }^{\text {TM }}$ Edge - Enables a new generation of responsive machine learning devices

PSoC ${ }^{\text {TM }} 6$ Al evaluation kit is Infineon's hardware platform to experience Edge Al offering

Infineon's PSoC ${ }^{\text {TM }} 6$ Artificial Intelligence evaluation kit

• Comprehensive kit for intelligent applications
• Integrated Infineon's MCU, sensors, connectivity, and software tools
• Small form factor and low cost for easy prototyping
• Complete and easy-to-use hardware and software platform

Target Use Cases

• Sound detection
• Presence detection, counting \& tracking
• Gesture sensing / Customized radar
• Motion detection
• Sensor fusion
  

Key Features

• Small form-factor ( $35 \times 45 \mathrm{~mm}$ ), wireless
• Solution approach with PSoC ${ }^{\text {TM }} 6$, QSPI Flash + multisensor input (radar, microphone, pressure \& 6-axis motion sensors)
• Complete ML to embedded SW journey: ModusToolbox ${ }^{\text {TM }}$ \& Imagimob Studio compatible
  

Benefits

• Low-cost evaluation board with efficient form factor for easy prototyping
• Rapid prototyping: Easy creation of sensor fusion-, ML-, acoustic-, time series- and radar models
• End-to-end: Collect data, create, train, evaluate \& deploy ML models fast

Customized Machine Learning on PSOC ${ }^{\text {TM }}$ Edge with Imagimob Studio and ModusToolbox ${ }^{\text {TM }}$

With the seamless integration of Imagimob Studio and ModusToolbox ${ }^{\text {TM }}$ companies can build and deploy robust machine learning models. When paired with PSOC ${ }^{\text {TM }}$ Edge, companies can optimize power consumption and improve efficiency while adding intelligence to products.

Imagimob Studio, Infineon's platform for machine learning development, makes it easier to create Edge AI models

ModusToolbox ${ }^{\text {TM }}$ Software is a modern, extensible development ecosystem

PSOC ${ }^{\text {TM }}$ Edge is the next generation Machine Learning-enhanced sensing, low power, secured, and advanced HMI high-performance microcontroller

Selected financial figures

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

FY23 revenue by region

Revenue by sales channel

Distribution partners ${ }^{1}$	Top-10 direct customers ${ }^{1}$
	$\begin{aligned} & \text { APTIV } \ & \text { HYUNDRI } \ & \text { NERMAS } \end{aligned}$	$\begin{aligned} & \text { BOSCH } \ & \text { SIEMENS } \end{aligned}$	$\begin{aligned} & \text { GUINental } \ & \text { VJESCC } \end{aligned}$	$\begin{aligned} & \text { A NELTA } \ & \text { VJESCC } \end{aligned}$	DENSO
					(1)
Jingchuan
MACNICA
(1) Morubun
(2) BL M
(4)
(1)					1 In alphabetical order

Group financial performance

Revenues and Segment Result

USD exchange rate

Average revenue exchange rate

	Q3	Q2	Q3
	FY23	FY24	FY24
$\varnothing$ USD/EUR	1.09	1.09	1.08

Order backlog ${ }^{1}$

[^0]
[^0]: ${ }^{1}$ See notes for definition

Automotive (ATV)

Revenues

• Slight q-o-q revenue increase - volume gains in microcontrollers moderately exceeding ongoing inventory correction in traditional applications
• Opposing trends of inventory rebalancing and content growth
• For FY24, we expect revenue growth of $\sim 3 \%$, despite adverse market conditions, due to MCU share gains and xEV exposure

Green Industrial Power (GIP)

Revenues

Segment Result

[EUR m] $\quad$ Segment Result $\rightarrow$ Segment Result Margin

• Stable revenue trend, reflecting late-cycle business
• Industrial demand stabilized on a low level; inventories remain elevated. Recovery expected to be gradual
• Demand for decarbonization-related applications robust, but still dampened by high inventory levels

Power \& Sensor Systems (PSS)

Revenues

• PSS turning the corner after six quarters of revenue decline; rising underutilization charges capping margin expansion
• Consumer, compute and communications markets coming off their trough- working down of inventories softening recovery
• Al power business ramping, we are on track to doubling revenue in the next fiscal year!

Connected Secure Systems (CSS)

Revenues

• Revenue continues to stabilize as loT and security market demand is bottoming
• Distributor inventories worked down, paving the way for a gradual cyclical recovery
• Driving structural growth with advancements in Edge AI through the PSoC ${ }^{\text {TM }} 6 \mathrm{Al}$ evaluation kit

Gross margin and Opex

Gross profit

$[$ EUR m]

• Gross margin as reported Gross profit as reported

Therein Non-Segment Result charges

[EUR m]

67	79	65	91	71

Adjusted gross margin

$46.2 \%$	$45.5 \%$	$44.9 \%$	$41.1 \%$	$42.2 \%$

R\&D

$[$ EUR m]

Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24

• R\&D expenses as \% of revenue R\&D expenses

Therein Non-Segment Result charges

$[$ EUR m]

12	12	16	18	15

SG\&A

$[$ EUR m]

Q3 FY23 Q4 FY23 Q1 FY24 Q3 FY24 Q3 FY24

• SG\&A expenses as \% of revenue SG\&A expenses

Therein Non-Segment Result charges

$[$ EUR m]

55	57	54	54	54

Investments, Depreciation \& Amortization and Free Cash Flow

Investments

Working capital, in particular trade working capital components

Working capital ${ }^{1}$

Trade receivables

[days]

${ }^{1}$ See notes for definition

Inventories

Trade payables

[days]

[days]

Return on capital employed

Historical development

Earnings-per-share and total cash return

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

■ EPS basic $\square$ EPS adjusted
Total cash return to shareholders via dividends
$[$ EUR m]

Development of liquidity and debt

Capital structure

Maturity profile

Calendar years 2024 to 2033

[EUR m; USD m; nominal values]

[^0]
[^0]: ${ }^{1}$ On 1 Oct 2019, Infineon issued a perpetual hybrid bond with two tranches: $€ 600 \mathrm{~m}$ with first call date in 2025 and $€ 600 \mathrm{~m}$ 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
\$1bn + at least $10 \%$ of revenues $\rightarrow$ €2.5bn

Status Quo (LTM 30 June 2024)

$\$ 1 \mathrm{bn}+9 \%$ of revenues $\rightarrow$ €2.3bn

Gross Debt ${ }^{2}$

$\leq 2.0 \times$ EBITDA

1.2x EBITDA

Comfortable liquidity position

Balanced debt position

• Flexibility for financing operating activities and investments through the cycle
• Cushion for net pension liabilities and contingent liabilities
• Gross debt target commensurate with investment-grade rating
• Successful de-leveraging offers ample headroom

Rating	Investment grade

BBB+ stable outlook (by S\&P Global Ratings)

[^0]
[^0]: ${ }^{1}$ Gross cash position is defined as cash and cash equivalents plus financial investments $\mid{ }^{2}$ 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

(infineon

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 Omdia - part of Informa Tech - reports, data and information referenced in this document:
Information is not an endorsement of Infineon Technologies AG. Any reliance on these results is at the third party's own risk.

Specific disclaimer for S\&P Global reports, data and information referenced in this document:

The S\&P Global [Commodity Insights and/or Mobility and/or Market Intelligence] 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 the relevant divisions within 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
AEB	autonomous emergency braking
AI	artificial intelligence
AR/VR	augmented/virtual reality
BEV	battery electric vehicle
BLE	bluetooth low energy
BMS	battery management system
BoM	bill of materials
CAV	commercial, construction and agricultural vehicles
CMOS	complementary metal-oxide-semiconductor
DC	direct current
DSC/SSC	double/single sided cooling
E/E	electrical/electronic architecture
ECU	electronical control unit
eSE	embedded secure module
eSIM	embedded subscriber identity module
EMS	electronics manufacturing service
ESS	energy storage system
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
HEMT	high-electron-mobility transistor
HID	human interface device
HMI	human machine interaction
HV	high voltage
HVAC	heating, ventilation, air conditioning
IC	integrated circuit
ICE	internal combustion engine

IGBT
IoT
IPM
MCO
MMA
MIMO
MNO
MOSFET
MV
OBC
OEM
P2S
PD
PHEV
PMIC
PUE
PSSU
PUE
PSU
RAM
RF
SDK
Si
SiC
SiO
siP
siP
siP
siC
siP
siC
siC
insulated gate bipolar transistor
internet of things
intelligent power module
light-emitting diode
microcontroller uni
microelectro-machanical systems
major home appliances
multiple input, multiple output
machine learning
mobile network operator
metal-oxide silicon field-effect transistor
medium voltage
near-field communication
on-board charger
original equipment manufacturer
Infineon's strategic product-to-system approach
power delivery
plug-in hybrid electric vehicle
power management integrated circuits
point of load
programmable system-on-chip
power usage effectiveness
power supply unit
photovoltaic
random access memory
radio frequency
Society of Automotive Engineers
software development kit
silicon
silicon carbide
signal-to-noise ratio
system-on-chip / state of charge
time-of-flight
ultra-wideband
wide-band gap, specifically referring to SiC and GaN based devices

Notes and ESG footnotes

Investments $=$

Capital Employed $=$

RoCE $=$

Working Capital $=$

DIO (days inventory outstanding; quarter-to-date) $=$
DPO (days payables outstanding; quarter-to-date) $=$
DSO (days sales outstanding; quarter-to-date) $=$
'Purchase of property, plant and equipment' + 'Purchase of intangible assets and other assets' incl. capitalization of R\&D expenses
'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')
  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
  ('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')
  ('Net Inventories'/'Cost of goods sold') x 90
  ('Trade payables'/'Cost of goods sold' + 'Purchase of property, plant and equipment']) x 90
  ('Trade receivables' - 'reimbursement obligations')1/'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. $\mathrm{CO}{2}$ savings are calculated based on the potential savings generated by technologies in which semiconductors are used. The $\mathrm{CO}{2}$ 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.
[^0]
[^0]: ${ }^{1}$ Without debtors with credit balances

Financial calendar

Date	Event	Location
27 Aug 24	Jefferies Global Semiconductor, IT Hardware \& Communications Technology Conference	Chicago
28 Aug 24	DB Dana Point Conference	Los Angeles
4-5 Sep 2024	DB Access European TMT Conference	London
4-5 Sep 2024	Citi Global Technology Conference	New York
23 Sep 24	Berenberg Goldman Sachs German Corporate Conference	Munich
24 Sep 24	Baader Investment Conference	Munich
25 Sep 24	Bernstein Pan European Annual Strategic Decisions Conference	London
12 Nov $24^{1}$	Earnings Release for the Fourth Quarter and the 2024 Fiscal Year
21 Nov 24	Morgan Stanley European TMT Conference	Barcelona
4 Dec 2024	ATV presentation and roadshow with Peter Schiefer, Head of ATV	London
4-5 Dec 2024	UBS Global TMT Conference	Scottsdale
04 Feb $25^{1}$	Earnings Release for the First Quarter of the 2025 Fiscal Year
20 Feb $25^{1}$	Annual General Meeting 2025

Investor Relations contacts

Alexander Foltin Executive Vice President Finance, Treasury \& Investor Relations +49 89 234-23766 alexander.foltin@infineon.com

Isabell Diel

Senior Manager Institutional Investor Relations +49 89 234-38297 isabell.diel@infineon.com

Holger Schmidt

Director
Institutional Investor Relations +49 89 234-22332 holger.schmidt@infineon.com

Visitor address

Am Campeon 1 - 15
885579 Neubiberg
Germany

Daniel Györy
Senior Director
Team lead Investor Relations
+49 89 234-35078
daniel.gyoery@infineon.com

Alexander Groschke

Director
Institutional Investor Relations
+49 89 234-38348
alexander.groschke@infineon.com

Verena Soos
Senior Manager
Retail Investor Relations
+49 89 234-22332
verena.soos@infineon.com