Infineon Technologies AG

Investor Presentation • May 7, 2024

Second Quarter FY 2024 Quarterly Update

Infineon Technologies AG Investor Relations

1

Infineon at a glance

Addressing long-term high-growth trends

FY23 revenue by segment

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

Financials FY23 revenue by product category

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

FY23 revenue of €16,309m by segment and key application

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

Intel NVIDIA Samsung Qualcomm Broadcom Limited SK Hynix AMD Apple Infineon STMicro 9.4% 9.0% 8.1% 5.7% 5.2% 4.3% 4.1% 3.4% 3.2% 3.2% STMicro Infineon NXP Microchip Renesas Texas Instr. Unigroup Guoxin CEC Huada GigaDevice Fudan Micro 17.1% 16.7% 16.5% 16.2% 15.0% 5.7% 0.8% 0.8% 0.8% 0.8% Microcontroller suppliers 2023 total global market: USD 29.8bn³ Power discretes and modules 2022 total global market: USD 30.9bn² Semiconductor suppliers 2023 total global market: USD 545bn¹ Infineon onsemi STMicro Mitsubishi Fuji Electric Toshiba Vishay ROHM Nexperia Renesas 20.6% 8.8% 7.6% 4.2% 4.0% 3.5% 3.5% 3.0% 2.7% 2.0%

1 Based on or includes research from Omdia: Annual 2001-2023 Semiconductor Market Share Competitive Landscaping Tool – 4Q23. March 2024. | 2 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.

3 Charts/graphics created by Infineon based on Gartner research. Source: Gartner, Inc., Market Share: Semiconductors by End Market, Worldwide, 2023. April 2024. GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

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

Target Operating Model

through cycle

Revenue growth	>10%
Segment Result Margin	25%
Adj. Free Cash Flow Margin1	10-15%
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

Through cycle growth rates by division GIP >10% PSS ~10% CSS ~10%

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

• ‒ Accretive investments into high organic growth
• ‒ Operating cash flow expected to outgrow investments mid-/long-term
• ‒ Differentiated in-house manufacturing complemented by ~40% outsourcing share over time
• ‒ FY24-28: ~€4.5bn cum. investments into major frontend buildings

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

Outlook for Q3 FY24 and FY24

	Outlook Q3 FY241	Outlook FY241
Revenue	~€3.8bn	€15.1bn +/-400m
Adj. Gross Margin		low-forties
Segment Result Margin	high-teens	~20%
FCF/adj. FCF		~€0m/~€1.6bn
Investments		~€2.8bn
D&A		~€1.9bn2

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 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

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 and our main sites Kulim and Melaka in Malaysia
• ‒ Installation start of PFC abatement system in Austin

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 113 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	05/2023
CDP	B climate scoring B water scoring	F to A	02/2024
Ecovadis	99th percentile "Platinum" award	0 to 100	03/2023
Dow Jones Sustainability™ Index	77 Dow Jones Sustainability™ World Index listing	0 to 100	12/2023
ISS ESG Corporate Rating	Prime Status	D- to A+	03/2023
FTSE4Good Index	Index member	–	06/2023
Sustainalytics	ESG industry top performer	–	01/2024

Infineon's wide bandgap strategy

With a world-scale fab complementing existing strengths, Infineon will be the industry's most competitive provider of SiC technology

SiC raw material supply + Cold Split technology

• ‒ More than 6 qualified SiC wafer and boule suppliers
• ‒ Increased productivity through Cold Split

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
• ‒ New .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

P2S

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

Villach Kulim

Pilot projects on track

• ‒ Qualification on selected high-volume technologies nearly finished
• ‒ SiC multi-sourcing strategy for raw materials in place
• ‒ Wafer yield equal or better to 150mm

Smart 200mm phase-over

• ‒ Volume production in Villach and Kulim
• ‒ Cleanroom and tools already available
• ‒ Full transition to 200mm within 3 years after qualification planned

Timeline

• ‒ Product roll-out based on 200mm starting Q1/2025
• ‒ Major new chip developments on 200mm

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

Automotive		Industrial (incl. PV and ESS)
	A total of 6 OEMs	A total of 5 major customers
Design-wins: ~ €5bn
Related customer pre-payments: ~ €1bn

• ‒ 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 CoolSiCTM G2

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

Infineon products: IMBG120R030M1H, IMBG120R026M2H.

Other SiC MOSFETs: value of parameters taken from datasheet in internet for the latest generations of 1200 V SiC MOSFETs in D2PAK 7pin: C3M0032120J1, SCT4018KW7, NTBG030N120M3S, SCT025H120G3AG, QGD = total charge associated to CRSS at given conditions, Qoss= total charge associated to COSS at given conditions. EOSS = total energy associated to COSS at given conditions

GaN market accelerating, driven by key power applications

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

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

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

2020 2030 Si SiC GaN GaN tipping point reached/in sight GaN transition coming up 2020 2030 HV HV HV DC/DC DC/DC DC/DC HV DC/DC Low-power motor control Residential Solar On-board charger Server Charger 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 FY23 revenue split by product group

Key customers

-3%

7%

17%

27%

37%

0 1.000 2.000 3.000 4.000 5.000 6.000 7.000 8.000 9.000

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

Automotive semiconductors (2023 total market: \$69,200n; +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

28.5%

22.5%

21.5%

• ‒ 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

Renesas

STMicro

Microchip

NXP

Infineon

Sensors MCUs Power semiconductors

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

10.6%

7.6%

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

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

xEV

ADAS/AD

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

• 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 2019-2028. October 2023; Infineon

‒ Infotainment

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 categories¹ : AURIX™ families, CoolSiC™, IGBT 750V, IGBT 1200V, MOSFETs, PROFET™, Radar, TRAVEO™ – none more than ~10%

Unmatched customer value creation and portfolio resilience

Leading technologies	System competence (P2S)	Broadest portfolio

1 In alphabetical order

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

Examples of MOSFET applications

Infineon's revenue growth

• ‒ 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™ Drive G2 CoolSiC™ 1200 V power modules

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

• › MCUs, PMICs: AURIX™ TC3, TRAVEO™ T2G, and PSoC™ for zone controller, ADAS, xEV drivetrain, and suspension
• › 2x HybridPACK™ Drive G2 CoolSiC™ 1200 V power modules or bare dies and gate drivers for traction inverter in Xiaomi SU7 Max
• › PROFET™ 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

P2S (product-to-system approach)

• ‒ Reference design for up to 300 kW, further customization possible
• ‒ System solution for easy implementation
• ‒ Fast time-to-market (T2M)

Freedom of choice

• ‒ IGBT and SiC in 750/1,200 V scale up to preferred power class
• ‒ HybridPACK™ Drive CoolSiC™ Gen2 continuous operation at 175°C
• ‒ EiceDRIVER™ gate driver Gen3 optimized for CoolSiC™
• ‒ Optimized 32-bit AURIX™ MCU

First Si/SiC fusion module concept (Si²C) significantly exceeding performance expectations without adding system complexity

Infineon solution offers compelling costperformance ratio without adding system complexity for customers

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

‒ Unrivaled productivity with worldscale fab and most diversified supplier network ‒ Superior trench technology and highest reliability ‒ Extensive packaging portfolio and complete system competence Leading SiC technology and production efficiency Most scalable SiC auto portfolio 650 V 750 V 1,200 V Module DSC/SSC Bare die module Discrete

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

BMS analog frontend IC

• ‒ Drivers for BoM: increasing battery capacity, more cells, more channels
• ‒ Triple-digit million € design-win in pipeline
• ‒ Additional upside from non-automotive markets: ESS, street lighting, forklifts

Automated Driving

AURIX™ MCU is the gold standard for ADAS/AD, control, safety, and high-speed in-vehicle network

AURIX™, TRAVEO™, and PSoC™ families

Infineon's revenue growth

€19bn MCU design-win volume secured

• ‒ Total automotive MCU design-win volume in the last four years exceeded €19bn
• ‒ 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 €3bn of revenues already in 2023

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

2023 2030 ‒ High-resolution radar significantly improves angle and classification

Market research companies; Infineon

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

Smart switches are mandatory for SAE L3 and above Infineon's revenue growth

• ‒ Superiority of semiconductors over fuses and relays:
  • ‒ Fast failure isolation (< 500 µs) 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

Green Industrial Power

GIP at a glance

GIP revenue and Segment Result Margin FY23 revenue split by product group

Key customers

0 500 1.000 1.500 2.000 2.500

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 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 revenue1		Market outlook for CY24
	~26% Renewable Energy Generation	‒ PV installations continue to grow, in 2024 channel inventory temporarily limits PV inverter shipments and respective semi demand ‒ Growth in wind installations underpinned by policy momentum mainly relies on onshore projects
	~11% Power Infrastructure	‒ Healthy demand for UPS (uninterruptible power supply), with growth potential driven by investments in datacenters ‒ EV Charging demand continues to be on growth track, especially for fast charger infrastructure ‒ Need for grid expansion drive investments in Transmission & Distribution and Energy Storage
	~12% Transportation	‒ Rail market in recovery, additional push expected by GC government investment ‒ eBus growth trend confirmed, eTruck may be limited by installed charging infrastructure
	~28% Automation & Drives	‒ Analysts expect improvement in 2H2024 with heterogeneous picture in regions and sectors, semi market recovery expected to follow gradually, investment confidence still cautious due to current interest rate levels
	~11% Heating, Ventilation, Air condition	‒ Persisting excess inventory and weak real estate markets limit market growth
	~6% Home Appliance 1 Does not sum up to 100% due to other applications not shown here	‒ Still no strong and sustainable sign of demand recovery, consumer sentiment remains low

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

Photovoltaic	+4,600 GW
Wind power	+1,900 GW

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

\$600bn annual investments	Grid network
+900 GW	Grid storage
+185m chargers	EV charging
+560 GW	Electrolysis

\$600bn annual investments	Heat pump	+420m units
	Fuel cell1 H 2	+200k FC EV +200k FC Trucks
(public and private )	eAviation eMarine

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

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

Infineon targets the complete EV charging ecosystem from AC to high-power DC

Power & Sensor Systems

PSS at a glance

PSS revenue and Segment Result Margin FY23 revenue split by product group

Key customers

amazon	ci sco	(D&LL)	C NELTA	n ERICSSON	SENPHASE.	Google
100	ILIFONI	makita	Panasonic	SAMSUNG	solaredge

0 500 1.000 1.500 2.000 2.500 3.000 3.500 4.000 4.500

Weakness in most verticals to persist with expected improvement during the course of CY 2024

Applications % of FY23 segment revenue1		Market outlook for CY24
	~15%	‒ Server weakness to extend through H1 CY24 with potential recovery in H2 – benefits from AI opportunities due to increasing semi content
	Computing	‒ PC market shipments are expected to recover in course of CY24, but to remain below pre-pandemic levels
	~10%	‒ Telco capex is forecasted to be flattish and slightly negative in wireless
	Communications	‒ Demand in H1 CY24 will be weak but with some upside potential in H2
	~7% Smartphones	‒ In CY24, y-o-y growth in smartphone shipments expected, recovery should have momentum in H2 CY24
	~24% Consumer	‒ Weak macro environment and related inventory digestion persists in H1 CY24, return to growth possible in H2
	~35% Industrial	‒ Flattish y-o-y development as weakness in residential solar and automotive markets came in late, reducing growth prospectives

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

2.8% 3.5% 3.7% 4.1% 4.2% 4.3% 5.3% 11.0% 12.6% 26.7% Silan CR Micro Renesas Nexperia Alpha & Omega Vishay Toshiba STMicro onsemi Infineon Discrete Power MOSFETs¹ 2022 total market: USD 13.1bn

Power ICs²

2022 total market: USD 32.3bn

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 kW – 12 kW

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

Power delivery network	Power design
	Discrete solution Equivalent discrete solution	Module solution Infineon's dual-phase modules with inductor-on-top design
10% of input power loss1
Lateral mounting	Standard discrete solution	Dual-phase module with inductor-on-top design
Power stage 12V → x core voltage	‒ No additional energy savings	efficiency savings3 ‒ 2%
DC/DC converter AI xPU 48 → 12V		30% more powerful processor4 ‒ and up to
of input power loss2 < 2%
Vertical mounting	not applicable	Dual-phase module with inductor-on-top design
DC/DC converter AI xPU 48 → 12V		efficiency savings3 ‒ additional 2% 30% more powerful processor4 ‒ and up to
smaller Power stage 12V → x core voltage		Only Infineon combination offering best-in-class energy efficiency, power density & TCO

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

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

Customer design wins in AI server business

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

Revenue CAGR FY24-29

> 50%

Connected Secure Systems

CSS at a glance

CSS revenue and Segment Result Margin FY23 revenue split by product group

Key customers

0 500 1.000 1.500 2.000 2.500

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

Applications

% of FY23 segment revenue Market outlook for CY24

	Industrial IoT	‒ Continued macro economic risks limit growth, while trends of Industry 4.0 and Industrial IoT remain
	Home Appliances	‒ Although penetration of smart appliances increases, potential deterioration of consumer sentiment limits growth
~63%	Smart Home	‒ Stabilization of macroeconomic environment expected to trigger slight growth in the smart home segments, while risks related to consumer spending prevail
Industrial and Consumer IoT	Health & Lifestyle	‒ Stabilization of macroeconomic environment could support growth in devices like smartwatches, while risks related to consumer spending prevail
	Media, Game & Compute	‒ Main consumer markets are projected to recover later in FY24 as the macroeconomic environment and consumer sentiment improve; however no sharp rebound expected
	Automotive	‒ Automotive market is slightly slowing down after better-than-projected development in 2023 due to persisting macroeconomic risks
~37%	Payment	‒ For the short-term outlook shipment declines are expected due to channel inventory digestion from high stock levels across the value chain
Smart cards	Identification	‒ Stabilization of market growth after post-Covid peak in ePassports, while demand remains high

CSS offers a compelling product portfolio and roadmap for IoT

Microcontrollers (PSoC™ and XMC™) AIROC™ Wi-Fi and Combos

• ‒ PSoC™ family for general purpose, XMC™ family for industrial
• ‒ Strength in low power, high performance, and capacitive touch sensing
• ‒ Compelling roadmap focused on AI, security, and integrated connectivity

• ‒ Wi-Fi standalone and Wi-Fi & Bluetooth® Combo chips for end devices
• ‒ Focus on innovation for IoT applications: reliability and power
• ‒ Strong leader for battery-operated Wi-Fi
• ‒ Recent new product introduced Wi-Fi 6 & 6E – the first IoT-focused product in the brand new 6 GHz band

AIROC™ Bluetooth®

• ‒ Portfolio of standalone and PSoC™ integrated Bluetooth® and Bluetooth® 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

ModusToolbox™ and Software

• ‒ ModusToolbox™ 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™ is a cloud services platform for data-driven improvement of connectivity and delivery of innovative IoT services

Customized Machine Learning on PSOC™ Edge with Imagimob Studio and ModusToolbox™

With the seamless integration of Imagimob Studio and ModusToolbox™ companies can build and deploy robust machine learning models. When paired with PSOC™ 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™ Software is a modern, extensible development ecosystem

PSOC™ Edge is the next generation Machine Learning-enhanced sensing, low power, secured, and advanced HMI high-performance microcontroller

Next-generation PSOC™ Edge portfolio: Infineon PSOC™ Edge E81, E83 and E84 microcontroller families

PSOCTM Edge – Enables a new generation of responsive machine learning devices

Fully integrated system-on-chip (SoC) devices supported with comprehensive system design tools and software.

Based on the high-performance Arm® Cortex®-M55 with an embedded ultra low power technology.

Robust security with on-chip, hardware-isolated secured enclave

Out-of-the-box Machine learning enablement

Quickly move from concept to product enabling fast time-to-market for IoT and consumer applications.

Financial synergy success marked by our journey to becoming a leading IoT solution provider

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)

• ‒ Stable revenue development moderate inventory correction, and annual price declines compensated by structural drivers and volume gains
• ‒ In 2023, Infineon expanded its global leadership in automotive semiconductors, including the number one position in MCUs
• ‒ For FY24, Infineon expects revenue growth by a low to mid-single digit percentage, despite adverse market conditions (EV growth slowing; modest inventory digestion), with an anticipated SR at the lower end of the aforementioned range of between 25 and 28 percent.

Green Industrial Power (GIP)

• ‒ Challenging business environment for industrial applications
• ‒ Weak corporate investing and low consumer confidence result in low demand for industrial drives and home appliances
• ‒ Robust underlying demand for decarbonization-related applications, but dampening impact of high inventory levels persisting

Power & Sensor Systems (PSS)

• ‒ MOSFETs and ICs for consumer-facing applications remained weak; revenue uptick in servers and smartphones
• ‒ Following six quarters of sequential decline, indicators point to March quarter being the trough
• ‒ Mid-term growth prospects remain promising notably driven by Infineon's leading AI power management solutions

Connected Secure Systems (CSS)

• ‒ Stabilizing demand for consumer IoT and smart card products drove bottoming revenue
• ‒ Pace of inventory correction slowing, some restocking by distributors in Wi-Fi
• ‒ Moderate demand recovery expected in the second half of CY24

Gross margin and Opex

Therein Non-Segment Result charges [EUR m]

Adjusted gross margin

Therein Non-Segment Result charges [EUR m]

Therein Non-Segment Result charges [EUR m]

8	12	12	16	18	54	55	57	54	54

Investments, Depreciation & Amortization and Free Cash Flow

Working capital, in particular trade working capital components

Trade receivables Trade payables

¹ See notes for definition

Inventories

Return on capital employed

Historical development

Earnings-per-share and total cash return

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

EPS basic EPS adjusted

Total cash return to shareholders via dividends

• ‒ Dividend for FY24: €0.35 per share
• ‒ Dividend payout of €456m for FY24

Development of liquidity and debt

Maturity profile

Calendar years 2024 to 2033

[EUR m; USD m; nominal values]

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 2024)
Gross Cash1	€1bn + at least 10% of revenues → €2.6bn	€1bn + 13% of revenues → €2.6bn
Gross Debt2	≤ 2.0x EBITDA	1.2x EBITDA
Comfortable liquidity position	‒ Flexibility for financing operating activities and investments through the cycle ‒ Cushion for net pension liabilities and contingent liabilities
Balanced debt ‒ Gross debt target commensurate with investment-grade rating position ‒ Successful de-leveraging offers ample headroom
Rating	Investment grade	BBB+ stable outlook (by S&P Global Ratings)

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 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	augemented/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	insulated gate bipolar transistor
IoT	internet of things
IPM	intelligent power module
LED	light-emitting diode
MCU	microcontroller uni
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
NFC	near-field communication
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
RAM	random access memory
RF	radio frequency
SAE	Society of Automotive Engineers
SDK	software development kit
Si	silicon
SiC	silicon carbide
SNR	signal-to-noise ratio
SoC	system-on-chip / state of charge
ToF	time-of-flight
UWB	ultra-wideband
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
15 May 2024	JP Morgan European TMT Conference	London
16 May 2024	UBS Best of Europe Conference	virtual
22 May 2024	JP Morgan Annual Global Technology, Media and Communications Conference and JP Morgan EMEA All Stars Forum	Boston
22 May 2024	dB Access European Champions Conference	Frankfurt
29 May 2024	Goldman Sachs Semiconductor Conference	New York
30 May 2024	Cowen TMT Conference	New York
5 – 6 Jun 2024	BofA Global Technology Conference	San Francisco
5 – 6 Jun 2024	Exane BNP Paribas CEO Conference	Paris
6 Jun 2024	Erste Bank Future in CEE – ERSTE Consumer & Technology Conference	virtual
11 Jun 2024	BofA C-Suite TMT Conference	London
5 Aug 20241	Earnings Release for the Third Quarter of the 2024 Fiscal Year
12 Nov 20241	Earnings Release for the Fourth Quarter of the 2024 Fiscal Year

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

Visitor address

Am Campeon 1 – 15 885579 Neubiberg 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