Infineon FY 2020 User Manual

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Second Quarter FY 2020 Quarterly Update

Infineon Technologies AG Investor Relations

Agenda

Cypress becomes part of Infineon

ESG: targets and achievements

Automotive

Industrial Power Control

Power & Sensor Systems

Digital Security Solutions

Selected financial figures

* pro forma figure

1) Based on or includes research from Omdia, "Annual 2001-2019 Semiconductor Market Share Competitive Landscaping Tool – Q4 2019 v2”, March 2020.

2) Based on or includes research from Omdia, "Power Semiconductor Market Share Database – 2018", September 2019. Results are not an endorsement of Infineon Technologies AG. Any reliance on these results is at the third party’s own risk.

Infineon and Cypress create a global top-10 player, and the new #3 in the overall microcontroller market

18.1%

17.6%

16.0%*

12.4%

12.0%

7.8%

1.5%

1.3%

1.2%

1.1%

Renesas

NXP

Infineon

Microchip

STM

Texas Instr.

Samsung

Nuvoton

Silicon Labs

Toshiba

Huada

Semiconductor suppliers

2019 total market: $428bn

MCU suppliers

2019 total market: $17.5bn

16.5%

12.3%

5.3%

4.7%

4.3%

3.4%

3.3%

2.6%

2.2%

2.0%

Intel

Samsung

SK Hynix

Micron

Broadcom

Qualcomm

Texas Instr.

Infineon

STMicro

Nvidia Kioxia

NXP

2.5%

2.6%

3.3%

3.6%

4.5%

4.8%

5.4%

8.9%

19.9%

Semikron

Rohm

Renesas

Fuji

Toshiba

Vishay

Mitsubishi

STMicro

ON Semi

Infineon

Power discretes and modules

2018 total market: $21.0bn

Infineon remains top player in its target markets:

security ICs, NOR Flash, and MEMS microphones

ABI Research, "Smart card & secure ICs", September 2019

8.5%

10.1%

17.4%

24.3%

24.8%

CEC Huada

STMicro

Samsung

Infineon

NXP

(+0.1-pt)

24.0%

23.7%

19.5%

12.8%

10.8%

Winbond

Macronix

Infineon

GigaDevice

Micron

Security ICs

2018 total market: $3.2bn

NOR Flash

2019 total market: $2.2bn

MEMS microphones die supplier

2018 total market: 4.6bn units

4.0%

4.7%

5.2%

37.0%

42.8%

MEMSensing

NJRC

Omron

Infineon

Knowles

Based on or includes research from Omdia, “MEMS Microphone Database 2019”, January 2020.

Based on or includes research from Omdia, "Annual 2001-2019 Semiconductor Market Share Competitive Landscaping Tool – Q4 2019 v2”, March 2020.

ABI Research, “Wireless Connectivity Technology Segmentation and

Addressable Markets", November 2019.

16.2%

14.9%

14.4%

11.2%

9.3%

Media Tek

NXP

Qualcomm

Broadcom

Infineon

Wi-Fi standalone ICs

2018 total market: 917m units

Infineon is focusing on wearables

and IoT but not addressing routers,

PCs, notebooks, tablets.

Two complementary companies in many aspects form a

financially stronger and more balanced player

Complementary

product scope

Broader base

Larger

scale

Value

creation

System solution

leader in high-growth

markets: automotive,

industrial and IoT

power management

security solutions

sensor systems

MCUs connectivity low power differentiated memories software / eco-system

› more structural growth drivers › more balanced geographical mix

› enlarged customer base › higher share of distribution

› combined FY19 revenue of approx. €10bn

› top 10 in the semiconductor industry › leading player in automotive, systems for power management and drives, sensor

systems, connected secure systems, wireless combos, differentiated memories

› expected revenue synergy potential of

> €1.5bn p.a. from FY28 onwards

› expected cost synergies of €180m p.a.

gradually ramping up over approximately three years after closing

› expected to be accretive to adjusted

EPS in FY21

› improved target operating model

– 9%+ revenue growth – 19% Segment Result margin – 13% investment-to-sales

Infineon offers a unique portfolio that links the real

and the digital world

Real-world

applications

Digital

world

Battery-powered devices

Consumer IoT

Power supplies

Drives

Industrial IoT

Connectivity

Software

Ecosystem

Automotive

Sense: sensors

Compute: microcontrollers,

memories

Actuate: power semiconductors Connectivity: Wi-Fi, Bluetooth, USB

Coin cell-powered devices

Smart Home

Information and data

about the real world

Value addition and

optimized use of resources

Infineon now offers the entire system for IoT -

unlocking new markets and applications

air con

auto

telematics

auto

head unit

service

robot

cooking,

washing,

heating,

cooling

shaver,

epilator,

toothbrush

camera

personal

medical

device

smart watch

surveillance

camera

smart

door lock

lifestyle

wearables

smart

speaker

printer

game

console

powersensors

security hardware

security software

RF and

sensors

power

software and ecosystem

connectivity

MCU

motor

light

coil

AC-DC

microph.

pressure

radar 3D ToF current

more ...

DC-DC

more ...

IoT control loop

cloud

Infineon has industry’s broadest product portfolio

covering entire range of auto applications

Body

Cluster/

Infotainment

Chassis Powertrain ADAS/AD

MCU (Embedded Power ICs,

PSoC™, Traveo™)

Application examples

Connectivity

(Wi-Fi, BT, BLE)

Memory

(NOR Flash, SRAM, nvSRAM, F-RAM)

Power (MOSFETs, IGBTs, modules, driver ICs, power ICs, LDOs, PMICs, USB Type-C PD)

MCU (AURIX™)

› HVAC

› door control

› pumps › seat adjustment

› instrument cluster › in-cabin entertainment

› touch control

› in-cabin charging

› braking › steering

› stability program

› suspension

› engine management › transmission

› main inverter

› auxiliaries

› speed control

› emergency braking

› blind spot detection › sensor fusion

Sensors (magnetic, pressure, radar, current, 3D ToF, TrueTouch®, CapSense®)

Connectivity

(USB)

NOR Flash benefits from growing use of flash-less

processing units (MCUs, GPUs, FPGAs, SoCs)

› ADAS/AD

› instrument clusters

› navigation systems › SOTA updates

Automotive Industrial ICT

Consumer

› programmable logic

controller

› GPS board

› 5G infrastructure

(radio heads)

› gateways › scanner, printer

› ear pods

› digital camera

› Advanced process nodes (28 nm and below) no longer offer embedded NOR Flash economically 

trends towards off-chip memory

› Infineon’s high-density NOR Flash is used as

› boot-up memory and

› instant-on program memory › Leader in high-density products (16 Mb – 4 Gb) › Semper™ Flash best positioned in functionally safety (ISO 26262 ASIL-B) and security for ADAS/AD › focusing on safety-critical applications in automotive, industrial, and communications

With the combined portfolio Infineon can offer full

system solutions

Outdoor Unit

Fan +

Compressor

PFC

Indoor Unit

User Interface

MCU

HMI

IPM

Gate Driver

IGBT /

MOSFET

Connectivity

Wi-Fi /

Bluetooth

Frontend

MCU

Connect

Security

(Trust)

Supply (AC-DC)

Infineon heritage Cypress heritage

Indoor Fan

Control

IPM

Main Control

Gate Driver

MOSFET

MCU

Main Control

Sensor

Radar

Proximity

Heater

Motor Louver

Air Quality

MCU

Fan

› Ease of design

 combined portfolio covers all relevant system components

› Superior quality

 integrated solution ensures MCU, power stage and

peripherals work perfectly

together

› Faster time-to-market

 no additional integration or software development costs

Example: air-conditioning system

What makes system solution

attractive to customers?

Touch / Button

LED / LCD

Audio out

Outdoor Fan

Control

MCU

Dual Motor

+ PFC

IPM

Infineon’s and Cypress’ competencies perfectly fit

together; e.g. for smart wearables

Connectivity

Human-machine interface

Wireless charging

Sensing

Device protection

Security

Memory

2 W inductive solution

2.5 W resonant solution

pressure sensor radar IC MEMS microphone

ESD protection battery authentication

Processing

microcontroller

NOR Flash F-RAM

touch interface

voice user interface

eSIM secure element + NFC cloud authentication

Wi-Fi/Bluetooth combo IC RF switches, low-noise

amplifiers, antenna tuners

Cypress heritage

Infineon heritage

IoT platform

ecosystem, software, services

Cypress financial performance*

310

354

411

401

345

229

178

164

158

170

Q1'19** Q2'19 Q3'19 Q4'19 Q1'20

Revenue development [$ m]

MCD MPD

202

199

216

212

196

37.6%

37.3%

37.7%

38.0%

38.2%

30,0%

32,0%

34,0%

36,0%

38,0%

40,0%

42,0%

44,0%

100

150

200

250

Q1'19** Q2'19 Q3'19 Q4'19 Q1'20

Gross profit [$ m], gross margin

gross profit gross margin

114

108

126

118

101

21.1%

20.4%

21.8%

21.1%

19.6%

0,0%

20,0%

40,0%

100

120

140

Q1'19** Q2'19 Q3'19 Q4'19 Q1'20

Non-GAAP operating income [$ m],

Non-GAAP operating margin

Non-GAAP oper. income Non-GAAP oper. margin

111

222

117

Q1'19** Q2'19 Q3'19 Q4'19 Q1'20

Free cash flow*** [$ m]

* Unaudited financials based on US-GAAP; for further details see www.infineon.com/ir/cypress. ** Q1’19 results include the NAND Flash business which was divested in Q2’19. Revenues of the NAND Flash business in Q1’19 were included in MPD. *** Free cash flow is calculated as net cash provided by (used in) operating activities, less net of acquisitions and sales of property, plant and equipment.

539

532

575

559

514

numbers may not add up due to rounding

Allocation of Cypress revenue leads to a more

balanced portfolio

Infineon_old

Cypress

Infineon_new

major product groups

revenue by segment

ATV

~55%

PSS

~10%

DSS

~35%

DSS

18%

PSS

31%

ATV

43%

DSS

~14%

ATV

~45%

IPC

~14%

PSS

~27%

› Traveo

› Automotive PSoC › NOR Flash › SRAM › F-RAM

› USB Type-A

› USB Type-B

› USB Type-C › USB Power Delivery

› PSoC › general purpose MCUs › IoT platform: ecosystem,

software, services

› connectivity (Wi-Fi,

Bluetooth, Bluetooth Low Energy, combos)

IPC

1) in the 12-month period ended March 2020

COGS

› Procurement for materials and manufacturing services

OpEx

› R&D: Optimize portfolio, reduce overhead › S&M: Efficiency gains in account coverage › G&A: Optimize corporate service providers

Expected integration and restructuring costs

equivalent to ~1x cost synergies one-off over time

(A) Near-term revenue synergy ramp up

› Improved customer access and cross-selling › Optimize Cypress digital marketing potential to address

revenue opportunities and grow customer numbers

(B) P2S for long-term revenue synergy ramp up

› Sensor systems and connectivity in IoT applications

› wireless connectivity in automation equipment › Security-hardened controllers and connectivity

› systems for power management and drives › differentiated memories in mission critical applications

FY22e FY25e FY28e

(A) (B)

€1bn

€1.5bn

FY21e FY22e FY23e*

COGS

S&M R&D

G&A

€180m

Short-term reaping of cost synergies, long-term value

creation of revenue synergies

Planned ramp-up of cost synergies Planned ramp-up of revenue synergies

* Expected cost synergies of €180m p.a. gradually ramping up over

approximately three years after closing. Ramp progression adjusted for later closing and COVID-19 implications.

Further improvement of through-cycle

target operating model

Target Operating Model

Infineon financial performance to approach

targets as integration progresses

Revenue

growth

9%+

(up from “9%”)

Segment

Result margin

19%

(up from “17%”)

Investment

-to-sales

13%

(down from “15%”)

Well-defined roadmap how to capture the value of the

deal (delayed by unpredictable COVID-19 pandemic)

Phase 1

(16 Apr 2020 onwards)

Phase 2

(2023+)

Phase 3

(2025+)

› Full commitment to new target operating model › Several tools in place to track and measure the progress of the integration

› highest priority:

ensure stability of Cypress’

business performance and

standalone operation

› harvest one-time cost synergies

(e.g. delisting) and overhead savings

› share existing IP and R&D

roadmaps to cancel/avoid

redundant development efforts

› launch customer

portfolio management and kick-off G2M push programs

› have streamlined global shared

service center set-up in place

› generate sustainable

procurement effects

› have aligned and prioritized

product roadmap with joint P2S concepts in place

› establish one interface to the

customer (OITC)

› build on full leverage of revenue

synergies

› launch new wave of P2S

products

› identify additional adjacent and

completely new target applications to fuel longer-term growth

Continuous implementation of planned cost and revenue synergy measures,

e.g. harvesting early cross-selling opportunities, streamlining opex structures, optimizing manufacturing footprint

› Arranging and syndication of acquisition facility

After successfully completing the equity part of the

refinancing, focus will now shift to the debt part

2019

› Initial equity de-risking in two steps:

› €1.5bn via ABB › €1.2bn via dual-tranche hybrid bond

2020

 



 

› Refinancing of remaining acquisition facility with maturities from

March 2022 to June 2024 through debt capital markets

› Liquidity: keeping gross cash target of €1bn plus at least 10% of

combined revenue

› Deleveraging: return to target level ≤ 2x gross debt / EBITDA

over mid-term



› Drawdown of acquisition facility and usage of raised funds › Investment grade rating of BBB- by Standard & Poor's › Completion of equity part via €1.0bn ABB

Infineon with moderate financial leverage post

Cypress closing

1) does not include hybrid bond; considered as equity under IFRS

2) based on an exchange rate of $1.0977 for €1.00

3) assuming conversion values of Cypress convertible instruments

4) excluding stock options and accelerated vested restricted stock units (RSU)

5) Cypress FCF calculated – in alignment to the FCF definition of Infineon – as total of net cash provided by operating activities and net cash used in investing activities

6) figure contains Infineon financial information prepared in accordance with IFRS as well as Cypress financial information prepared according to US-GAAP. Neither US-GAAP / IFRS conversion has been performed, nor purchase price allocation effects have been considered

Aggregated unaudited combined EBITDA, 12-month period ended March 20206): €2.3bn

Sources [EUR bn

]

Acquisition financing facilities

− bridge

3.9

− term loan

3.0

Infineon gross cash

2.5

total

9.4

Uses [EUR

]

Cypress shares

8.1

Cypress gross debt effective 1.3

total 9.4

Pre closing Post closing

Assumpt.: all pre-existing Cypress debt paid off

Acquisition financing

Infineon per 31 Mar 2020

[EUR

bn]

gross cash

4.6

gross debt

1.5

net cash

3.1

Cypress per 29 Mar 2020

[EUR

bn]

gross cash

0.8

gross debt reported

1.0

gross debt effective

1.3

net debt effective

0.5

Infineon per 31 Mar 2020

[EUR

bn]

gross cash

2.9

gross debt

8.4

net debt

5.5

› On an aggregatedunaudited basis, Infineon and

Cypress together generated FCF5)of €0.9bn in the 12-month period ended March 2020

simplified overview; numbers may not add up due to rounding

› net debt/EBITDA: 2.0x › gross debt/EBITDA: 3.2x

Post ABB May 2020 (€1bn)

Infineon per 31 Mar 2020

[EUR

bn]

gross cash

2.9

gross debt

7.4

net debt

4.5

ABB proceeds used to pay off debt

Outlook for Q3 FY20 and FY20 including Cypress

Segment Result margin

Revenue

At the mid-point of the revenue guidance:

positive mid-single digit

percentage

€1.9bn to €2.3bn

Investments in FY20 €1.2bn – €1.3bn**

D&A in FY20 ~€1.0bn***

Outlook FY20*

* Based on an assumed average exchange rate of $1.10 for €1.00 (previously $1.13 for €1.00). ** Formerly ~€1.3bn for Infineon standalone. *** Outlook does not yet include D&A on tangible and intangible assets from purchase price allocation of Cypress acquisition. On the other hand, outlook

includes D&A on tangible and intangible assets from purchase price allocation of about €60m, primarily to International Rectifier.

~ €8.4bn

+/- 5%

At the mid-point of the revenue guidance:

~12%

Outlook Q3 FY20*

Tight customer relationships, based on system know-

how and application understanding

ATV IPC

DSSPSS

Distribution partners

EMS partners

Agenda

Cypress becomes part of Infineon

ESG: targets and achievements

Automotive

Industrial Power Control

Power & Sensor Systems

Digital Security Solutions

Selected financial figures

Our products and innovations together with an efficient

production are key elements to deal with climate change

Our net ecologic CO2benefit is equal to…

The savings of a 1,795 km

photovoltaic powerplant.

The average annual

electricity consumption of

about 86 million people living in Europe.

48,700 fully occupied flights of an Airbus A380 from Munich to Singapore.

We contribute a CO2 reduction of more than 54 million tons

For footnotes please see appendix

Infineon will become carbon-neutral by 2030

1. Avoiding direct emissions and further reducing energy consumption

2. Purchasing green electricity with guarantees of origin for unavoidable emissions

3. Compensate the smallest part by certificates that combine

development support and CO2abatement

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

70% CO2emissions reduction target in 2025 (Scope 1 and 2 emissions)

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

Normalized PFC emissions rate in tons of CO2equivalent per m² wafer area

1.6

1.7

1.4

1.2

2.2 2.2 2.2 2.2 2.2

2015 2016 2017 2018 2019

Infineon

WSC 2020 target

Historically, Infineon's normalized emission rate has been below WSC 2020 target of 2.2 tons of CO2equivalent per m² wafer area.

Dow Jones Sustainability Index

Ethibel Sustainability Index

Excelence Europe”

ISS-Oekom

Ecovadis

CDP

External recognitions confirm our engagement in

contributing to a sustainable society

MSCI ESG

FTSE4Good Index

Euronext Vigeo Eurozone 120 Index Euronext Vigeo Europe 120 Index

Sustainalytics

AA CCC to AAA 02/2020

B climate scoring

B- water scoring

F to A 02/2020

98thpercentile

“Gold” award

0 to 100 11/2019

79 DJ Sustainability™

World Index listing

0 to 100 09/2019

Index member - 09/2019

C+

Prime Status

D- to A+ 07/2019

Index member - 07/2019

Indices member

06/2019

“Outperformer” level

0 to 100

03/2019

Rating/Score

Scale

Date

Appendix

1) This figure considers manufacturing, transportation, function cars, flights, materials, chemicals, water/waste water, direct emissions, energy consumption, waste, etc. and is based on internally collected data and externally available conversion factors. All data relate to the 2019 fiscal year. Manufacturing service providers are not included.

2) This figure is based on internally established criteria, which are explained in the explanatory notes. The figure relates to the calendar year 2018 and considers the following fields of application: automotive, LED, induction cookers, server, renewable energy (wind, photovoltaic), mobile phone chargers as well as drives. CO2savings are calculated on the basis of potential savings of technologies in which semiconductors are used. The CO2savings are allocated on the basis of

Infineon market share, semiconductor content and lifetime of the technologies concerned, based on internal and external

experts' estimations.

3) Calculation based on average polycrystalline photovoltaic cells and the average yearly solar radiation of central Germany.

4) Based on the average electricity consumption of private households in Germany and official energy conversion factors.

5) Calculation based on average passenger capacity and direct flight route using externally available data and conversion factors.

Automotive

Infineon and Cypress create the new number 1 in the

automotive semiconductor universe

› Cypress contributed 2.2%-points to the combined

automotive semiconductor market share of 13.4%

› Cypress contributed 6.1%-points to the combined

automotive microcontroller market share of 16.2%

› Infineon is the #2 automotive memory supplier

with a market share of 13.2% (total contribution by Cypress, mainly NOR Flash)

Source: Strategy Analytics, "Automotive Semiconductor Vendor Market Shares v2", May 2020. The acquisition of Cypress by Infineon closed on 16 April 2020.

The market shares for 2019 shown here are the combined market shares of Infineon and Cypress based on their individual figures.

Sensors

6.7%

7.0%

8.0%

13.5%

14.1%

Melexis

NXP

ON Semi

Infineon

Bosch

Microcontrollers Power

6.6%

9.8%

10.1%

27.0%

27.2%

6.1%

Microchip

Infineon

Renesas

NXP

5.4%

8.2%

9.1%

13.9%

25.5%

ON Semi

Bosch

STMicro

Infineon

11.2%

11.3%

8.7%

8.1%

7.6%

2.2%

Infineon

NXP

Renesas

STMicro

Automotive semiconductors 2019 total market: $37.2bn

13.4%

16.2%

Cypress

Electro-mobility

xEV growth driven by EU emission regulation;

CO2 reduction of 37.5% by 2030 vs 2021

CO2emission development and regulations for main regions

* Japan has already met its 2020 statutory target as of 2013 Source: ICCT (www.theicct.org), August 2019

100

150

200

2010 2015 2020 2025 2030

US Japan China EU

Japan 2020: 122 g CO2/km*

EU 2021: 95 g CO2/km

China 2020 :

117 g CO2/km

US 2020: 125 g CO2/km

actual enacted

proposed

EU 2025: 81 g CO2/km

EU 2030: 59 g CO2/km

emission values [g/km], normalized to NEDC

CO2reduction of 37.5% will drive BEV/PHEV share towards ~40% of all cars sold in EU in 2030!

-37.5%

-15%

No CO2reduction since 2016! Necessity for significant improvements

increases continuously!

$1 $2 $3 $4 $5 $6 $7

1 2 3 4 5 6 7

The incremental demand of power semiconductors is

a significant opportunity

2019 average xEV semiconductor content by degree of electrification

Source: Infineon; IHS Markit, Automotive Group, “Alternative propulsion forecast”, September 2019; Strategy Analytics, "Automotive Semiconductor Content", August 2019. * Non PT (non powertrain): average semiconductor content in Body, Chassis, Safety & Infotainment application segments. ** "power" includes linear and ASIC; "others" include opto, small signal discrete, memory

48 V / MHEV FHEV / PHEV BEV

2018 0.3m vehicles 2.9m vehicles 1.7m vehicles 2020 2.3m vehicles 4.8m vehicles 3.2m vehicles 2025 20.6m vehicles 10.5m vehicles 10.2m vehicles 2030 30.0m vehicles 14.1m vehicles 15.8m vehicles

Non PT*

ICE PT

xEV Power**

total

semi

BoM

xEV others

xEV Sensors

xEV µC

$355

$62 $5

$19

$90

$531

Non PT*

ICE PT

xEV Power**

total

semi

BoM

xEV others

xEV Sensors

xEV µC

$355

$62

$14

$19

$305

$29

$785

Non PT*

ICE PT

xEV Power**

total

semi

BoM

xEV others

xEV Sensors

xEV µC

$355

$14

$19

$350

$37

$775

Automated Driving

Vision Zero – AD requires failure-tolerant availability of the

system in the environment, “better than a human”

Sense Interpret & decide Act

Driver

Automated car

Dependable Sensors Dependable Computing Dep. Actuators

Dependable Power (power supply and power distribution)

specialized

sensor

processor

driving

domain

controller

sensor

fusion

decision

making

central

gateway

Secure communication

Lidar

MicrophoneUltrasonic

Camera

inside

Camera

Radar

Braking

Engine

Matrix LED

Steering

Transmission

and authentication

A failure-tolerant system with high availability relies on dependable key functionalities

Others

› Ultrasonic › Interior camera › V2X

NCAP 5 Star, AD L2 AD L2+/L3 AD L4/L5

≥ 1

Increased sensor requirements drive the content in

the next five years and beyond

≥ 4

≥ 8

≥ 3

≥ 6

≥ 10

Radar

# of modules

› Ultrasonic › Ultrasonic

› Interior camera

Automatic emergency brake/ forward collision warning

Application

Parking assist Lane keep assist Highway assist

Valet parking Highway and urban chauffeur

≥ 1

≤ 1

Camera

# of modules

Lidar

# of modules

New: Corner; starting 2020

Corner

Imaging

Surround

Corner

MRR/LRR

* Source: VDA (German Association of the Automotive Industry); Society of Automotive Engineers ** market assumption

More sensors required for any next level of automation

ADAS/AD semi growth driven by radar and camera

sensor modules over the next 5 years

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

Sense Interp. & dec. Act

Source: Strategy Analytics; Infineon. BoM contains all type of semiconductors (e.g. radar modules include µC); sensor fusion does not include memory. BoM are projected figures for the respective time frame.

radar

modules

lidar

modules

total

BoM

L4/L5 (2030)

sensor

fusion

actuators

camera

modules

$195

$230

$190

$300

$180

total

BoM

L3 (2025)

$190

$560

$630

sensor

fusion

camera

modules

radar

modules

lidar

modules

total

BoM

L2 (2020)

$40

$90

$30

$160

AD L4/L5

L4/L5 vehicles in 2030: ~4m

AD L3

L3 in 2025: ~1.5m

NCAP 5 Star/AD L2

L2 vehicles in 2020: ~6m

AD L2+

sensor

fusion

camera

modules

radar

modules

lidar

modules

total

BoM

L2+ (2025)

L2+ in 2022: ~1m

L2+ in 2025: ~2.5m

$970

$190

$55

High

Low

High

Low

High

Low

High

$250

Infineon's Power Strategy

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

When turned on  current flows

When turned off  current is blocked

What is a power switch? How are power switches categorized?

What counts?

› Losses in on-state (R

(DS)on

)

› Heat dissipation › Max. switching frequency › Die size › Package size (form factor)

IGBT Module

Discrete IGBT

MOSFET

100 W

1 kW

10 kW

1 Hz

1 kHz

1 MHz

power

100 kW

1 MW

10 MW

frequency

SiC

Module

SiC MOSFET

GaN

MOSFET

Infineon's discrete power portfolio* is basically

separated by voltage classes

6,500 V

4,500 V

3,300 V

1,700 V

1,200 V

IPC territory

PSS

territory

discrete

IGBTs

IGBT

modules

SiC MOSFET today

(CoolSiC™)

CoolSiC™ MOSFET

roadmap

GaN MOSFET today

(CoolGaN™)

CoolGaN™ MOSFET

roadmap

900 V 600 V 400 V 150 V 100 V

80 V 40 V

20 V

high-voltage MOSFETs

(CoolMOS™)

mid-voltage MOSFETs

(OptiMOS™)

low-voltage MOSFETs

(OptiMOS™)

* excluding drivers and control ICs

MOSFETs

Silicon-based power switches

Compound semiconductors

IGBTs

(discrete, modules)

ATV

territory

Three strategic levers to outgrow the power semi

market: "core – adjacent – new"

Controller

switch

Gate driver

triggers low-power signal

translates

signal into

appropriate

gate input

 Adjacent

 Core

application

e.g. motion

control, power

conversion

 Strengthen core

› Complement leadership in today's

discrete power and module portfolio with SiC and GaN

 Grow in adjacent fields

› Invest into products for digital

control loop including algorithms for drives

 Broaden scope to new applications

› System understanding and strong R&D force allow us to enter emerging power

applications

 New

Second generation (2

Gen.) CoolSiC™ Trench

MOSFET will increase the addressable market

1stGen. CoolSiC™ Trench MOSFET

is the leading technology today

2ndGen. CoolSiC™ Trench MOSFET

is in advanced development phase

2ndGen. CoolSiC™ Trench MOSFET

will significantly enlarge the market

size for SiC MOSFETs

1stGen. CoolSiC™ Trench MOSFET

has set the industry benchmark

› Enhanced power handling capability by

25% – 30%

› Enhanced safe operating area without

compromising quality

› Enabling SiC in further high volume

applications

Source: Infineon, datasheets on supplier web pages, September 2019.

1stGen. with lowest losses

2ndGen. will expand the lead

0,2

0,4

0,6

0,8

1,2

Infineon

IGBT

Vendor B

SiC MOS

Vendor A

SiC MOS

Vendor C

SiC MOS

Infineon

CoolSiC™

Vendor E SiC MOS

Infineon

CoolSiC™

Turn-on losses, E

[mJ]

TO247 3pin

TO247 4pin

Siltectra:

Status of implementation of Cold Split technology

› Wafer for splitting are already available › Increases # of wafers up to a factor of 2

› Boules start to become available › Increases # of wafers by a factor of 2.0 in a

first step, with potential for a factor of 2.6

Wafer splitting by 2022 Boule splitting by 2023

› Design and production of

semi-automated process tool park completed in Dresden

› Clean room ready for

manufacturing by end of calendar year 2020

› Integration of individual

process steps into complete work flow

Process tools Clean room Process flow

1/3 of the industrialization journey

accomplished

Combining boule splitting and wafer splitting will make the most efficient process

› Acceleration of revenue growth

from 2023 onwards

500

1000

1500

2000

2500

2018 2019e 2020e 2021e 2022e 2023e 2024e

Infineon is ready to support and shape the growing

SiC device market

Today

› Leading Infineon technology with

1stGen. CoolSiC™ Trench MOSFET

› Already broad, fast growing portfolio › System expertise and customer access

Strategic projects to support growth

› 2ndGen. CoolSiC™ Trench MOSFET › Cold Split: wafer and boule

› Manufacturing lines already capable of

processing 200 mm diameter

SiC device market revenue

[US$ m]

Source: Yole, " Power SiC 2019: Materials, Devices and Applications 2019",

July 2019.

CAGR

(18-24)

: 29%

Industrial Power Control

Clear leader in discrete IGBTs and IGBT modules;

IPMs strengthened again

* Littelfuse acquired IXYS Corporation in January 2018. Both companies are reported separately in 2017 and combined as Littelfuse in 2018.

** Including standard (non-integrated) IGBT modules and power integrated modules (PIMs) / converter inverter brake (CIB) modules.

Source: Based on or includes research from Omdia, "Power Semiconductor Market Share Database 2018", September 2019.

1.8%

2.1%

2.2%

2.4%

3.5%

4.9%

8.0%

9.7%

10.4%

34.5% (+1.7-pt)

ON Semi

Toshiba

Starpower

Danfoss

Hitachi

Vincotech

Semikron

Fuji Electric

Mitsubishi

Infineon

0.5%

0.6%

1.4%

2.1%

2.9%

5.8%

10.0%

12.0% (+1.6%-pt)

18.9%

32.3%

Jilin Sino-

Micro

Microchip

Rohm

STMicro

Sanken

Semikron

Fuji Electric

Infineon

ON Semi

Mitsubishi

1.6%

3.1%

3.8%

4.8%

5.0%

5.4%

5.9%

9.5%

9.6%

37.4% (+ 0.7-pt)

Microchip

Toshiba

MagnaChip

Renesas

Mitsubishi

STMicro

Littelfuse*

Fuji Electric

ON Semi

Infineon

Discrete IGBTs

2018 total market: $1.31bn

IGBT modules**

2018 total market: $3.25bn

IPMs

2018 total market: $1.68bn

Due to the extensive power module portfolio Infineon

can address the whole range of drives applications

Servo drives Low-power drives* Mid- and high-power drives

370 W

500 kW

10 MW

370 W 75 kW

› high positioning accuracy › fast response with no overshoot › high reliability

› performance and reliability › safety features › good price/performance ratio

› safety › durability › high reliability and low downtime

Requirements

*Low-power drives include compact drives, standard drives, premium drives and brushed DC drives.

› robotics › material handling › machine tools

› pumps and fans

› process automation

› cranes › marine drives

› oil & gas industry

› chemical industry

(e.g. air compressors)

› cement mills

Key applications

› CIPOS™ IPM › Easy 1B › Easy 2B

› iMOTION™

› CIPOS™ IPM › EasyPACK™

› EconoPACK™

› PrimePACK™ › IHM › IHV

Infineon products

Infineon is a key player in the PV market providing

solutions to the leading inverter manufacturers

Global PV installations p.a.

Infineon is present at top-10* inverter manufacturers (2018)

2|Sungrow



3|SMA



4|Power Electronics



5|ABB



6|Sineng Electric



8| SolarEdge



9| Ingeteam



10| KSTAR

1|Huawei



121

127

131

125

109

140

163

171

176

2019 2020e 2021e 2022e 2023e 2024e

Mainland China Rest of World

* Infineon is serving the top-10 but not necessarily as a sole supplier

1) based on or includes content supplied by IHS, "PV Installations Tracker – Q1 2020"; April 2020; including off-grid

2) by shipped capacity in MW: based on or includes content supplied by IHS, "PV Inverter Market Tracker – Q4 2019“, October 2019

3) ABB sold its solar inverter business to Fimer in 2019

CAGR

(19-24)

: 5%

CAGR

(19-24)

: 8%

CAGR

(19-24)

: 7%

[GW]

7| TBEA Sunoasis



Infineon is the leading power semiconductor supplier

for the wind turbine industry

Infineon is present at top-10* wind turbine manufacturers (2019)

2| Siemens Gamesa



3| Goldwind



4|GE



5|Envision



6| Mingyang



7|Nordex



8| Enercon



9|Sewind



10| Senvion



1|Vestas



Global wind energy installations p.a.

2019 2020e 2021e 2022e 2023e 2024e

Mainland China Rest of World

* Infineon is serving the top-10 but not necessarily as a sole supplier

1) Wood Mackenzie Power & Renewables, "Market Outlook Update”, Q1 2020

2) Forecast of market shares by installations in MW: Wood Mackenzie, Power & Renewables, “Global wind turbine OEM market share forecasts”, October 2019

CAGR

(19-24)

: 0%

CAGR

(19-24)

: 5%

CAGR

(19-24)

: 3%

[GW]

Core Adjacent

New area

What comes next?

Mid- to long-term structural growth opportunities

new material

solar pumps

collaborative robots

eAviation

eMarine

fuel cell

eDelivery vehicles

Courtesy: Siemens AG

Courtesy: Lilium GmbH

Courtesy: Alstom

Courtesy: Shakti pumps

EV charging

energy storage

Courtesy: McKinsey

Power & Sensor Systems

› power supplies › EV on-board charger › PV inverter › power tools › lighting › Industry 4.0 › Internet of Things

› smartphones › mobile devices

› wearables

› 5G massive MIMO

› eBikes, eScooter › multicopter

› aviation

› LSEV › space › gaming › smart home

› data center › enterprise server

› PC, notebook

› peripherals

PSS's growth is built on many applications from

different sectors in power and non-power

CommunicationsConsumer / MiscComputing Industrial

AC-DC (power) DC-DC (power)

RF and sensors (non-power)

PSS – Power

Infineon is the clear leader in MOSFETs;

growth potential in power ICs

1.8%

2.2%

3.8%

4.5%

5.9%

7.0%

8.0%

13.1%

Microchip

ROHM

Nexperia

A & O

Vishay

Renesas

Toshiba

STMicro

ON Semi

Infineon

Source: Based on or includes research from Omdia, "Power Semiconductor Market Share Database 2018", September 2019. Discrete Power MOSFET market incl. automotive MOSFETs. Power IC market incl. automotive power ICs.

15.9%

8.3% (+0.8%-pt)

7.3%

7.1%

5.7%

5.1%

4.5%

3.7%

3.2%

Texas Instr.

Infineon

Qualcomm

ADI

STMicro

ON Semi

Dialog

NXP

Maxim

Renesas

27.7% (+0.7%-pt)

Discrete Power MOSFETs

2018 total market: $7.58bn

Power ICs

2018 total market: $25.62bn

Technology leadership in MOSFETs and digital

power: highest efficiency and power density

Controller

MOSFET

Driver IC

triggers low-power

signal to switch on

translates signal into high-

current gate input

switches on,

current flows

Power management solutions reduce TCO

More efficient semiconductors

› lower power consumption › lower opex

Higher power-density

› more compact system designs › lower capex

Adjacent Core

In total battery-powered applications are a significant growth driver for PSS' power business

Four interrelated trends drive power semiconductor

BoM in battery-powered applications

From corded to cordless power tools

From brushed DC to brushless DC motors

Trend towards higher power and higher battery voltage

New applications

with trend towards "batteryfication"

BoM increase:

power semiconductor content increase up to 4x for DIY tools

Premium products:

~15% higher ASP for MOSFETs and drivers

significant volume

increase



  

Interrelated trends for battery-powered applications

Transition from 3G/4G to 5G drives demand in power

semis for antennas and power supplies

5G base station

Massive MIMO

DC-DC (MOSFET, ICs)

Fog Computing

AC-DC, DC-DC (MOSFET, ICs)

Base station power supply

AC-DC, DC-DC (MOSFET, ICs)

Cloud Computing

AC-DC, DC-DC (MOSFET, ICs)

5G mmWave antenna

AC-DC, DC-DC (MOSFET, ICs)

› driver #1: massive growth of data and computing power › driver #2: higher number of base stations due to denser network › driver #3: ~4x higher power semiconductor 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

New!

Core

Adjacent New area

What comes next?

Mid- to long-term structural growth opportunities

power tools

home appliances

class D audio

new material

on-board charger

Courtesy: Nissan

collaborative robots

hyperscaleAI data center

5G infrastructure

smart speaker

PSS – RF and Sensing

RF and Sensing devices enable new services and

will shape the way we live and work

Commercial and consumer multicopters

Courtesy: BMW

Augmented Reality

Voice-controlled devices

Gesture control

Industrial robotics

Various use cases are enabled by a small set of versatile core technologies

We focus on MEMS sensors and target to become

the leader in 3D sensing and radar

Smart Ears, Smart Feeling, Smart Nose

Human Machine Interface

distortions

Receive

clear audio

signals

Microphone

World

smallest form

factor

Measure CO2

6x6mm²

Environmental

Best-in-class

resolution

Measure

height

Pressure

Best-in-class

resolution

3D mapping

3D ToF

Highest

energy

efficiency

Biometrics

3D radar

Voice authentication

Face recognition & biometric identification

Key Use Cases – Examples

Smog alarm

Advanced fitness

tracking

Gesture sensing 3D AR gaming

Smart Eyes &

Sixth Sense

Digital Security Solutions

Growing

 Smart card form factor

 Embedded form factor

Emerging Maturing

Continuous stream of new topics aging and exiting

time

maturity

SIM Card

Authentication

Embedded Secure Element (NFC)

Government ID

TPM for Computing

TPM for Automotive

eSIM for Automotive

Contact-based Payment

Transport Ticketing

eSIM for

Industrial

eSIM for

Consumer

TPM for Smart Home

Contactless Payment

Pay TV

TPM for ICT Security

Trust for Industrial

Tokens for Industrial

Trust for Smart Home

Source: Infineon

In IoT, the Cypress and Infineon portfolios

complement each other for best-in-class solutions

Security hardware

Security software

RF and

sensors

Power

Software and Ecosystem

Connectivity

MCU

Cypress standalone offering:

Infineon standalone offering:

Past: standalone IoT offerings from

Infineon and Cypress

Now: combined IoT offerings going forward

Software and Ecosystem

Connectivity

MCU

Security hardware

Security software

RF and

sensors

Power

Best-in-class solutions - extending Infineon’s scope of applications and markets and attracting new customers with new applications

DSS offering

Cypress

DSS has an industry-leading offering built on

multi-year investments and experience

Microcontroller

Connectivity

Security

Software

Ecosystem

› 15+ years of investment in PSoC portfolio with > 2bn MCUs shipped › major advantages of programmability and low power consumption › integrated security as a key feature, especially for IoT

› excellent market reputation; 1bn+ wireless nodes shipped › proven interoperability between Wi-Fi and BT/BLE as well as monolithic

integration into MCUs

› a leader in combos and software stack  key for IoT applications › leading security market player; unrivaled in security and contactless

competence

› full solution offered with software – making security easy-to-implement,

especially for IoT devices

› industry-leading software and toolbox: WICED, MODUS Toolbox › software as a key differentiator and a major enabler for fast and easy

implementation of MCU, connectivity and security solutions in IoT devices

› established developer community for hardware and software

› fast, proven technical support infrastructure

Agenda

Cypress becomes part of Infineon

ESG: targets and achievements

Automotive

Industrial Power Control

Power & Sensor Systems

Digital Security Solutions

Selected financial figures

332

317

311

297

274

1,983

2,015

2,062

1,916

1,986

37.8%

36.5%

35.5%

37.0%

34.5%

Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20

Revenue Segment Result Gross Margin

[EUR m]

Revenue increase in Q2 FY20 contributed from all

four divisions

› Challenging market environment › 4% q-q revenue increase › Gross margin and segment result in Q1

benefited from a positive nonrecurring

effect of approximate €36m

Revenue development

591

598

639

593

617

132 145 153 146 138

22.3

24.2

23.9

24.6

22.4

FY19

Q3 Q4 Q1

FY20

347

357

362

334

358

67 55 59

19.3

15.4

16.3

18.6

17.3

FY19

Q3 Q4 Q1

FY20

Segment Result margin in %

164

167

162

158

162

11.6

11.4

13.6

13.9

14.2

FY20

Q3 Q4 Q1

FY20

875

888

893

829

846

112 98 78 67

12.8

11.0

8.7

8.1

6.0

FY19

Q3 Q4 Q1

FY20

[EUR m][EUR m]

Q2 FY20 division performance

ATV

IPC DSS

PSS

[EUR m] [EUR m]

› Q2 FY20: Growing

demand for wind turbines, home appliances and

industrial drives. Solar and

traction in line with previous quarter.

Revenue

Segment Result

-3%

-1%

› Q2 FY20: Revenue

growth in the areas of authentication as well as payment and ticketing

› Q2 FY20: DC-DC power

supply products and mobile device components showed a strong performance

› Q2 FY20: Q-Q increase

mainly due to a stronger demand for comfort electronics and microcontrollers

10%

20%

30%

FY16 FY17 FY18 FY19 Q2 FY19 Q3 Q4 Q1 FY20 Q2

Adjusted RoCE (excluding PPA, Deferred Tax Effects, RF power sale, Cypress) RoCE

Adjusted RoCE above WACC

RoCE and adjusted RoCE

Q2 FY19 Q3 Q4 Q1 FY20 Q2

EPS basic

EPS adjusted

Earnings-per-share and total cash return

Total cash return to shareholders

[EUR m]

173

109

130

129

FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20

convertible bond buyback share buyback (via put options) dividends

305

212

167

164

202

225

248

› Policy of sustainable

dividend payout

› Dividend for FY19:

€0.27 per share

› Dividend payout of €336m

on 25 Feb 2020

283

336

2,450

[EUR cent]

308

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

Opex within target range

[EUR m]

* In FY19, reported R&D expenses amounted to €945m, net of €111m of grants received and net of €125m of capitalized development costs.

55 57 63 53 58

157

159

151

156

236

243

230

243

241

10.7%

10.6%

10.8%

10.6%

10.8%

11.9%

12.1%

11.2%

12.7%

12.1%

Q2 FY19 Q3 Q4 Q1 FY20 Q2 Q2 FY19 Q3 Q4 Q1 FY20 Q2

General & Administration Selling R&D % of sales

212

214

222

204

Selling, General & Administration Research & Development*

214

Inventory coming down after reaching high in Q1

Working capital*

Inventories

Trade receivables

Trade payables

[EUR m]

* For definition please see page "Notes".

[EUR m]

891

848

888

809

879

Q2 FY19 Q3 Q4 Q1 FY20 Q2

Trade receivables DSO*

[EUR m]

1,128

1,079

1,089

923

883

Q2 FY19 Q3 Q4 Q1 FY20 Q2

Trade payables DPO*

[EUR m]

[days]

1,452

1,475

1,511

1,583

1,762

Q2 FY 19 Q3 Q4 Q1 FY20 Q2

[days]

1,706

1,701

1,736

124 124

115

132

120

Q2 FY19 Q3 Q4 Q1 FY20 Q2

Inventories DIO*

1,767

1,758

Cycle management slows down investments

646 693 683 758 858 ~940

114

140

129

103

~60

13.5%

12.8%

14.5%

16.5%

18.1%

14.2%  15.4%

13.1%

12.9%

11.5%

11.3%

11.8%

11.9%

FY15 FY16 FY17 FY18 FY19 FY20e FY15 FY16 FY17 FY18 FY19 FY20e

Non-SR-related D&A Guidance % of revenue [rhs]

[EUR m]

* For definition please see page "Notes".

785

826

1,022

1,254

1.2bn – 1.3bn

945

760

833

812

861

~1.0bn

1,451

Investments* Depreciation & Amortization

Decrease in net cash reflects dividend payout

1,882

3,435

3,779

4,859

4,588

3051

1,549

1,535

1,556

1,531

1,537

333

1,900

2,223

3,328

3,051

FY19

Q3 Q4 Q1

FY20

Gross Cash Debt Net Cash

[EUR m]

› Q3 FY19: Includes the proceeds of €1.5bn resulting from the capital increase executed on 18 Jun 2019 in

connection with the planned acquisition of Cypress

› Q1 FY20: Proceeds from €1.2bn dual-tranche hybrid bond booked on 1 Oct 2019 › Q2 FY20: Dividend payout of €336m in February 2020

Liquidity development

Glossary (1 of 2)

AC alternating current AC-DC alternating current - direct current AD automated driving ADAS advanced driver assistance system AEB automatic emergency braking AFS advanced frontlight system AI artificial intelligence AR augmented reality BEV battery electric vehicle BGA ball grid array BLE Bluetooth Low Energy BoM bill of material BT Bluetooth CPU central processing unit DC direct current DC-DC direct current - direct current DIY do it yourself

DPM digital power management eCall emergency call ECU electronic control unit EPS electric power steering eSIM embedded subscriber identity module EV electric vehicle FPGA field programmable gate array GPS global positioning system GPU graphics processing unit HEV mild and full hybrid electric vehicle HMI human machine interaction HSM hardware security module HST high-speed train HW hardware ICE internal combustion engine IPM intelligent power module IVN in-vehicle networking

Glossary (2 of 2)

iPol image processing line IRF International Rectifier IVN in-vehicle networking LCD liquid crystal display LED light-emitting diode LSEV low-speed electric vehicle LSPS LS Power Semitech Co. Ltd. µC microcontroller MEMS micro electro-mechanical systems MHA major home appliances MIMO multiple input, multiple output

microhybrid

vehicles using start-stop systems and limited recuperation

mildhybrid

vehicles using start-stop systems, recuperation, DC-DC conversion, e-motor

MOSFET

metal-oxide silicon field-effect transistor OBC on-board charger OEM original equipment manufacturer PFC power factor correction PHEV plug-in hybrid electric vehicle Pol point-of-load

PV photovoltaic PSoC programmable system-on-chip RF radio frequency rhs right-hand scale Si silicon SiC silicon carbide SiGe silicon germanium SMPS switch-mode power supply SNR signal-to-noise ratio SOTA software over-the-air SRAM static random access memory SW software TCO total cost of ownership ToF time-of-flight TPM trusted platform module UPS uninterruptible power supply V2X vehicle-to-everything communication VR virtual reality VSD variable speed drive xEV all degrees of vehicle electrification (EV, HEV, PHEV)

Disclaimer

This presentation contains forward-looking statements about the business, financial condition and earnings performance of the Infineon Group. These statements are based on assumptions and projections resting upon currently available information and present estimates. They are subject to a multitude of uncertainties and risks. Actual business development may therefore differ materially from what has been expected. Beyond disclosure requirements stipulated by law, Infineon does not undertake any obligation to update forward-looking statements.

Specific disclaimer for Omdia – part of Informa Tech – reports, data and information referenced in this document:

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of this document. The information and opinions expressed in the Omdia Materials are subject to change without notice and neither Informa Tech nor, as a

consequence, Infineon have any duty or responsibility to update the Omdia Materials or this publication as a result. Omdia Materials are delivered on an "as-is" and "as-available" basis. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in the Omdia Materials. To the maximum extent permitted by law, Informa Tech and its affiliates, IHS Markit and its Affiliates and their respective, officers, directors, employees and agents, disclaim any liability (including, without limitation, any liability arising from fault or negligence) as to the accuracy or completeness or use of the Omdia Materials. Informa Tech and/or IHS Markit will not, under any circumstance whatsoever, be liable for any trading, investment, commercial or other decisions based on or made in reliance of the Omdia Materials. The "IHS Markit" brand and logo have been licensed for use by Informa Tech. The "IHS Markit" brand and logo and any third-party trademarks used in the IHS Markit Technology Materials are the sole property of IHS Markit Group or their respective third-party owners.

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Cover photography:

Deutscher Zukunftspreis 2015, laureate Infineon, photographerAnsgar Pudenz, Hamburg (Germany).

Financial calendar

Date

Location

Event

– 4 Jun 2020

Berlin

 virtual

dbAccess Berlin

Conference

– 10 Jun 2020

Paris

 virtual

Exane

22ndEuropean CEO Conference

4 Aug 2020*

Q3 FY20 Results

21 Sep 2020

Unterschleißheim (nearby Munich)

Berenberg

Goldman Sachs German Corporate Conference

22 Sep 2020

Munich

Baader

Investment Conference

6 Oct 2020

Call: ATV Business

Update

9 Nov 2020*

Q4 FY20 and FY 2020 Results

* preliminary

Notes

Investments = 'Purchase of property, plant and equipment' + 'Purchase of intangible assets and other assets' incl. capitalization of

R&D expenses

Capital Employed = 'Total assets' – 'Cash and cash equivalents' – 'Financial investments' – 'Assets classified as held for sale

– ('Total Current liabilities' – 'Short-term debt and current maturities of long-term debt' – 'Liabilities classified as held

for sale')

RoCE = NOPAT / Capital Employed

= ('Income from continuing operations' – 'financial income' – 'financial expense') / Capital Employed

Working Capital = ('Total current assets' – 'Cash and cash equivalents' – 'Financial investment' – 'Assets classified as held for sale') –

('Total current liabilities' – 'Short term debt and current maturities of long-term debt' – 'Liabilities classified as held for sale')

DIO (days inventory outstanding; quarter-to-date) = ('Net Inventories' / 'Cost of goods sold') * 90

DPO (days payables outstanding; quarter-to-date) = ('Trade payables' / ['Cost of goods sold' + 'Purchase of property, plant and

equipment']) * 90

DSO (days sales outstanding; quarter-to-date) = ('Trade receivables' / 'revenue') * 90

Please note: All positions in ' ' refer to the respective accounting position and therefore should be applied with the positive or negative sign used in the

relevant accounting table.

Most recent presentations

ATV Call Peter Schiefer

8 October 2019

https://www.infineon.com/atv_call

IPC Business Update Dr. Peter Wawer, Dr. Peter Friedrichs

7 May 2020

https://www.infineon.com/pcim_presentaion

Sustainability Report 2019 23 November 2019

https://www.infineon.com/sustainability_2019

IFX Day 2018 Capital Markets Day London, 12 June 2018

https://www.infineon.com/ifxday_2018

Institutional Investor Relations contacts

Alexander Foltin

Corporate Vice President Finance, Treasury & Investor Relations

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

Isabell Diel

Manager Investor Relations +49 89 234-38297

isabell.diel@infineon.com

Holger Schmidt

Senior Manager Investor Relations +49 89 234-22332

holger.schmidt@infineon.com

Joachim Binder

Senior Director Investor Relations +49 89 234-25649

joachim.binder@infineon.com

Alexander Groschke

Senior Manager Investor Relations +49 89 234-38348

alexander.groschke@infineon.com

Infineon FY 2020 User Manual

Specifications and Main Features

Frequently Asked Questions

User Manual