Infineon Rockwell Automation User Manual

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First Quarter FY 2020 Quarterly Update

Infineon Technologies AG Investor Relations

Agenda

Infineon at a glance

Planned acquisition of Cypress

Quarterly highlights

Automotive

Industrial Power Control

Power Management & Multimarket

Digital Security Solutions

Selected financial figures

ATV IPC PMM DSS

Power embedded control RF & Sensors

Infineon at a glance

Automotive Power Security ICs

897

982

1,208

1,353

1,319

5,795

6,473

7,063

7,599

8,029

15.5%

15.2%

17.1%

17.8%

16.4%

3000

6000

9000

FY15 FY16 FY17 FY18 FY19

Revenue Segment Result Margin

[EUR m]

44%

18%

30%

Automotive (ATV)

Industrial Power Control (IPC)

Digital Security Solutions (DSS)

Power Management & Multimarket (PMM)

[EUR m]

3,503

1,418

2,445

642

Revenue in FY19: €8,029m incl. OOS and C&E of €21m

Financials

Market Position

FY19 revenue by segment

FY19 revenue by product category

# 2 # 1 # 2

Strategy Analytics,

April 2019

Informa Tech,

September 2019

ABI Research,

September 2019

Infineon is a long-standing member of Europe's

leading sustainability indices

› Feb 2019: Infineon is listed in

the Sustainability Yearbook for the 9thconsecutive year

Infineon's most recent achievements

› Jul 2018: Infineon was added to the FTSE4Good Index Series in 2001 and has been

confirmed as a member since then

› Since 2014, Infineon has been publishing information on opportunities and risks due to

climate change through the "Carbon Disclosure Project" (CDP)

› Mar 2019: Infineon has been reconfirmed as a constituent of the Ethibel Sustainability Index

(ESI) Excellence Europe

› Mar 2019: Infineon has been reconfirmed for inclusion in the Ethibel EXCELLENCE

Investment Register

› Sep 2019: Infineon is listed in

the DJS Index for the 10

consecutive year

› Mar 2020: Infineon received a rating of “AA” (on a scale of “AAA” – “CCC”) in the MSCI ESG Ratings

assessment

› Mar 2019: Sustainalytics

rated Infineon as an Outperformer in its ESG rating, with an overall score of 76

Our strategy is targeted at value creation through

sustainable organic growth

Target operating model: average-cycle targets

Revenue growth

Segment Result margin

17%+

Investment-to-sales

15%

System leader

in automotive

#1; system and

technology leader

Broad RF and sensor

technology portfolio

#2 in Security Solutions

Auto Power RF & Sensors Security

› Focus on fastest growing

segments of semi market

› Tackle global megatrends

› Leverage core competencies

in different end markets to

maximize ROI

› Create value for customers

through system under-

standing

Focus Technology leadership System understanding

› Organic RoCE ≙ ~2x WACC

› Paying at least an unchanged dividend

even in a year of slower or no growth

› continuous EPS

increase

Continued value creation for shareholders

Well diversified exposure to end-markets and

applications provide resilient growth model

FY19 revenue of €8,029m by target application

powertrain excl. xEV (12%)

xEV 7%

safety excl. ADAS (8%)

ADAS 3%

comfort, premium (12%)

other ATV (2%)

drives (6%)

renewables (3%)

home appliances (3%)

traction (2%)

other IPC (4%)

computing (8%)

consumer (2%)

smartphones,

wearables (5%)

communications (1%)

industrial (11%)

other PMM (3%)

smart card solutions (5%)

embedded security solutions (3%)

ATV 44%

IPC

18%

PMM

30%

DSS

Tight customer relationships, based on system know-

how and application understanding

ATV IPC

DSSPMM

Distribution partners

EMS partners

Infineon gained market share in all target markets

Source: Based on or includes content supplied by

Informa Tech (former IHS Markit Technology), "Power Semiconductor Market Share Database – 2018", September 2019

Source: ABI Research, “Secure Smart Card and

Embedded Security IC Technologies", September 2019

Source: Strategy Analytics, "2018 Automotive

Semiconductor Vendor Share", April 2019

Automotive

semiconductors

total market in 2018: $37.7bn

2.6%

2.8%

4.9%

5.4%

7.6%

8.2%

8.9%

11.2%

12.0%

Toshiba

ADI

Rohm

ON Semi

Bosch

STMicro

Renesas

Infineon

NXP

Security ICs

total market in 2018: $3.2bn

8.5%

10.1%

17.4%

24.3%

24.8%

CEC Huada

STMicro

Samsung

Infineon

NXP

Power discretes

and modules

total market in 2018: $21.0bn

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

(+1.2-pt)

(+0.4-pt)

(+0.1-pt)

Outlook for Q2 FY20 and FY20

Segment

Result Margin

Revenue

At the mid-point of the

revenue guidance:

~14%

Increase of 5%

+/- 2%-points

Investments in FY20 ~€1.3bn**

D&A in FY20 ~€1.0bn***

Outlook FY20*

* Based on an assumed average exchange rate of $1.13 for €1.00 ** Includes ~€400m for cleanroom, office buildings and structural changes *** Including D&A on tangible and intangible assets from purchase price allocation of about €60m

Increase of 5%

+/- 2%-points

At the mid-point of the

revenue guidance:

~16%

Outlook Q2 FY20*

(compared to Q1 FY20)

Agenda

Infineon at a glance

Planned acquisition of Cypress

Quarterly highlights

Automotive

Industrial Power Control

Power Management & Multimarket

Digital Security Solutions

Selected financial figures

The deal shapes a portfolio that perfectly 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

Linking the real and the digital world

Infineon Cypress

Sense  sensors

Compute  microcontrollers,

memories

Actuate  power semiconductors

Connectivity  Wi-Fi, Bluetooth, BLE,

USB/USB-C/USB-PD

Infineon and Cypress can together offer full system

solutions

Outdoor Unit

Fan +

Compressor

PFC

Indoor Unit

User Interface

MCU

HMI

IPM

Gate

Driver IGBT /

MOSFET

MCU

Dual Motor + PFC

Connectivity

WIFI /

Bluetooth

Frontend

MCU

Connect

Security

(Trust)

Supply (ACDC)

UART

Touch / Button

LED / LCD

Audio Out

Infineon Cypress

Legend

Indoor Fan

Control

IPM

Main Control

Gate

Driver

MOSFET

MCU Main

Control

Sensor

RadarProximity

Heater

Motor Louver

Air Quality

UART

MCU

FAN

Example: air-conditioning

What makes system solution

attractive to customers?

› 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 addl. integration or software dev. costs

Infineon and Cypress portfolios complement each

other covering entire range of auto applications

Body

Cluster/

Infotainment

Chassis Powertrain ADAS

MCU

Sensors

compute power / application complexity

Low High

Application examples

Infineon Cypress

Legend

NOR Flash

Connectivity

Creating the #1

auto semi vendor

Complementary MCU

portfolio results in:

› broader customer access › cross-selling opportunities

Portfolio expansion through:

› connectivity (Wi-Fi,

Bluetooth, USB-PD)

› external NOR flash for

processors in cars

NOR Flash

Power

Sensors

Power

MCU (AURIX™)

› HVAC

› door control

› hybrid cluster › WiFi

› touch control

› USB-C

› braking › steering

› domain

› engine › transmission

› inverter

› radar

› sensor fusion

Full coverage of all application fields within automotive Benefits of combination

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

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

(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 solutions › Security-hardened controllers and connectivity › Motor control solutions

FY22e FY25e FY28e

(A) (B)

€1bn

€1.5bn

FY20e FY21e FY22e

COGS

S&M R&D

G&A

ca. €180m

Expected cost synergies of ca. €180m p.a. by FY22

Revenue synergy potential > €1.5bn p.a. long-term

Further improvement of through-cycle

Target Operating Model

Current

(as announced

at CMD 2018)

Integrated

company*

Revenue

growth 9% 9%+

Segment

result margin 17%+ 19%

Investment

-to-sales 15% 13%

* Infineon financial performance to approach new targets as integration progresses

Financing: Major steps already accomplished

STEP 1

STEP 2

STEP 3

STEP 4

Underwriting of full acquisition amount by 3 banks

Confirmation of investment grade rating by Standard & Poor's

Equity de-risking: Raise of €1.5bn via ABB

Successful syndication of acquisition facility to 20 national and international banks

STEP 5

   



› Refinancing of remaining bridge and term loan through capital

markets

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

2023

Successful launch of €1.2bn dual-tranche hybrid bond

Agenda

Infineon at a glance

Planned acquisition of Cypress

Quarterly highlights

Automotive

Industrial Power Control

Power Management & Multimarket

Digital Security Solutions

Selected financial figures

Major European tier-1 awards Infineon with triple-digit million Euro design-win for 48 V mild-hybrid platform

TOLT package

Electro-mobility: Infineon enforces footprint

top side cooling pad

top-side view

bottom-side view

x-ray view

› Through deep understanding of our customer system

requirements, we developed a new product combining

the latest 80 V MOSFET technology and the new TOLT

package featuring top-side cooling

› The top-side cooling concept significantly improves thermal

management by enabling the heatsink to be connected directly to the top of the component instead of having the thermal dissipation through the printed circuit board

› Application: starter generator for 48 V mild-hybrid vehicles

Defining the benchmark for MEMS microphones; Infineon’s

new sealed dual-membrane technology

› Unique sealed dual-membrane (SDM) XENSIV™ MEMS

microphone design boosts audio pick-up quality

› Sealing of the capacitive area enables practically noise-

free audio signal capturing

› Inhouse developed packages enable our customers to

create outstanding audio experiences:

› noise cancellation: in the smallest possible form factor › transparent hearing: clear understanding

› binaural recording: create a truly immersive experience

Up to 3 microphones per earbud (6 per set)

top view

XENSIV™ SDM MEMS microphone

bottom view

Sealed dualmembrane design

Sealing of capacitive area for

noise free audio signal capturing

Sweeping success of our XENSIV™ MEMS microphones driven by unparalleled audio characteristics

4.0%

4.7%

5.2%

37.0%

42.8%

MEMSensing

NJRC

Omron

Infineon

Knowles

Source: Informa Tech, "MEMS Microphone Database 2019", January 2020

Infineon’s market share development in MEMS microphones

2018 MEMS die market share

total market: 4.6bn units

Technological progression of Infineon XENSIV™ MEMS microphones

SNR = 58 – 64 dB(A)

Single-back plate

Dual-back plate

SNR = 63 – 69 dB(A)

Sealed dual-membrane

SNR = 68 – 75 dB(A)

3.5%

5.2%

8.8%

26.5%

34.7%

33.5%

37.0%

2006 2008 2010 2012 2014 2016 2018

While photovoltaic is partially in grid parity, there is a clear trend towards string inverter-based set-ups

› Approaching grid parity through reduced capex and opex spending

› Different inverter concepts allow for efficient and customized plant designs

Market developments

› multiple strings of solar panels are connected

together

› application: utility-scale PV plants › output: 600 kW – 1,250 kW › power semi content: €2,000 – €3,000 per MW

New set-up: string inverter

Traditional set-up: central inverter

› solar panels are connected together into strings

› application: commercial and utility-scale PV plants

› output: 1 kW – 200 kW › power semi content: €2,500 – €5,000 per MW

Easy 1B

Easy 2B

Easy 3B

TO247-3

TO247-4

Driver ICs

PrimePACK™ 3

PrimePACK™ 3+

EconoDUAL™ 3

62 mm

central inverter

string inverter

Infineon provides innovative SiC products to SMA, the European

market leader of PV inverters

Customer-specific SiC-based solution

› Almost doubles the power density to 1.76 kW/kg › Efficiency of > 99% › Leads to reduced system complexity of the PV

inverter resulting in easier maintenance and

extended product lifetime

Gate drivers of the EiceDRIVER™ family

CoolSiC™ EasyPACK™ 2B

Sunny Highpower PEAK3

36x

SMA Sunny Highpower PEAK3

› 150 kW output power per unit

› Designed for decentralized photovoltaic power plants

› Compact inverter design: Easy transportation and installation

Infineon’s SiC business so far dominated by

industrial; design-in momentum clearly on automotive

Cumulated SiC design-ins of ~€1.8bn*

Strong growth in SiC business; very balanced product and customer portfolio

FY17 FY18 FY19 FY20e

automotive

industrial

* as per end of FY19; as a cautious assumption, lifetime of all projects is capped after five years.

** only customers with > €10k revenue considered

CAGR

(FY17-FY20)

: ~50%

› > 125 different CoolSiC™ products in FY19 › ~ 90 different customers** in FY19

› ~ triple-digit €m revenue expected for FY20

› automotive: diodes, MOSFETs, MOSFET modules › industrial (IPC): diodes, MOSFETs, hybrid modules,

MOSFET modules

› industrial (PMM): diodes, MOSFETs

60% – 80%

[EUR m]

Automotive

Infineon's position in the automotive semiconductor

universe

Market share trend: Infineon benefits disproportionately from the two mega trends

› electro-mobility: power, drivers, µC › automated driving: radar, µC

Source: Strategy Analytics, "Automotive Semiconductor Vendor Market Shares", April 2019

Sensors

7.6%

8.0%

8.3%

13.4%

16.4%

ON Semi

NXP

Melexis

Infineon

Bosch

Microcontrollers Power

6.3%

9.1%

9.9%

28.0%

Microchip

Infineon

Renesas

NXP

5.4%

8.2%

9.2%

13.2%

26.2%

ON Semi

Bosch

Infineon

12.0%

11.2%

8.9%

8.2%

7.6%

NXP

Infineon

Renesas

Automotive semiconductors total market in 2018: $37.7bn

› ADAS/AD

› Powertrain

› 24 / 77 GHz radar › comfort › safety

› xEV penetration › EPS › Lighting, comfort

long-term drivers:

+0.4%-pt

+0.6%-pt

+0.5%-pt

+0.2%-pt

long-term drivers:

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

PMM territory

discrete

IGBTs

IGBT

modules

SiC MOSFET today

SiC MOSFET

(CoolSiC™)

roadmap

GaN MOSFET today

GaN MOSFET

(CoolGaN™)

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

SiC roadmap

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

Four key success factors: Infineon well positioned to

defend its leadership in power semis also in SiC

› multi-year SiC wafer

supply agreement

› acquisition of

SILTECTRA™

4.) System3.) Module

1.) Substrate

2.) Device

› trench-based

architecture

› 150 mm conversion

completed

› expertise from

industrial heritage

› high-volume

manufacturing

› deep application and

system know-how

› Product-to-System

trenchplanar trenchplanar

Courtesy: Kaco and pv magazine

2008

100 kW

1129 kg

2011

50 kW

151 kg

2016

50 kW

70 kg

2019

150 kW

85 kg

GateSource

Drain

Industrial Power Control

Clear leader in discrete IGBTs and IGBT modules;

IPMs strengthened maintaining #3

* Littelfuse acquired IXYS Corporation in January 2018. Both companies are reported separately in 2017 and combined as Littelfuse in 2018. ** Microchip Technology acquired Microsemi Corporation in May 2018. Both companies are reported separately in 2017 and combined as Microchip in 2018. *** Including standard (non-integrated) IGBT modules and power integrated modules (PIMs) / converter inverter brake (CIB) modules.

Source: Based on or includes content supplied by Informa Tech (former IHS Markit Technology), "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

IGBT modules

***

total market in 2018: $3.25bn

0.5%

0.6%

1.4%

2.1%

2.9%

5.8%

10.0%

12.0%

18.9%

32.3%

Jilin Sino-Micro

Microchip**

Rohm

STMicro

Sanken

Semikron

Fuji Electric

Infineon

ON Semi

Mitsubishi

IPMs

total market in 2018: $1.68bn

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

total market in 2018: $1.31bn

(+1.6-pt)

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 installed PV capacity

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

2|Sungrow



3|SMA



4|Power Electronics



5|ABB



6|Sineng Electric



8|Ingeteam



9|KSTAR



10|TMEIC

1|Huawei



58.2

109.4

44.8

50.5

103

160

2018 2023e

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 Informa Tech (former IHS Markit Technology), "PV Installations Tracker – Q1 2019"; March 2019; including off-grid

2) by shipped capacity in MW: based on or includes content supplied by Informa Tech (former IHS Markit Technology), "PV Inverter Market Tracker – Q3 2019“, October 2019

CAGR

(18-23)

: 2%

CAGR

(18-23)

: 13%

CAGR

(18-23)

: 9%

[GW]

7|SolarEdge



Infineon is the leading power semiconductor supplier

for the wind turbine industry

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

2|Goldwind



3|Siemens Gamesa



4|GE



5|Envision



6|Enercon



7|Nordex



8|Mingyang



9|Sewind



10|United Power



1|Vestas



Global installed wind capacity

29.6

41.3

20.6

26.2

50.2

67.5

2018 2023e

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”, March 2019

2) by shipped capacity in MW: Wood Mackenzie, Power & Renewables, "Historic wind turbine OEM market share”, March 2019

CAGR

(18-23)

: 5%

CAGR

(18-23)

: 7%

CAGR

(18-23)

: 6%

[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 Management & Multimarket

› 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 › PC, notebook

› peripherals

PMM'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)

PMM – Power

Infineon is the clear leader in MOSFETs;

growth potential in power ICs

Discrete Power MOSFET market

total market in 2018: $7.58bn

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 content supplied by Informa Tech (former IHS Markit Technology), "Power Semiconductor Market Share Database 2018", September 2019. Discrete Power MOSFET market incl. automotive MOSFETs. Power IC market incl. automotive power ICs.

Power IC market

total market in 2018: $25.62bn

15.9%

8.3%

7.3%

7.1%

5.7%

5.1%

4.5%

3.7%

3.2%

Infineon

Qualcomm

ADI

STMicro

ON Semi

Dialog

NXP

Maxim

Renesas

(+0.8%-pt)

27.7% (+0.7%-pt)

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 PMM's 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

PMM – 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

Infineon OPTIGA™ Trust M to improve the security

and performance of connected devices

› The single-chip solution securely stores unique

device credentials and enables devices to connect

to the cloud up to 10x faster than software-only alternatives. It is ideal for industry and building automation, smart homes and consumer electronics.

› When deploying OPTIGA™ Trust M, critical assets

such as certificates and key pairs used to identify

a device can be injected into the chip at Infineon’s

secured factory premises.

› The turnkey set-up minimizes design, integration

and deployment effort of embedded systems by providing a cryptographic toolbox, protected I2C interface and open source code.

New OPTIGA™ Trust M solution helps customers to enhance security of their devices

Agenda

Infineon at a glance

Planned acquisition of Cypress

Quarterly highlights

Automotive

Industrial Power Control

Power Management & Multimarket

Digital Security Solutions

Selected financial figures

359

332

317

311

297

1,970

1,983

2,015

2,062

1,916

39.5%

37.8%

36.5%

35.5%

37.0%

Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20

Revenue Segment Result Gross Margin

[EUR m]

Seasonal revenue decline in Q1 FY20

-3%

› Challenging market environment › Seasonality: revenue down -7% q-q › Segment Result slightly better driven by

one-offs as well as cost savings

› Normalizing demand

› Channel inventories are largely back to

normal levels

-7%

Revenue development

617

591

598

639

593

155 132 145 153 146

25.1

22.3

24.2

23.9

24.6

FY19

Q2 Q3 Q4 Q1

FY20

352

347

357

362

334

69 67 55

19.6

19.3

15.4

16.3

18.6

FY19

Q2 Q3 Q4 Q1

FY20

Segment Result Margin in %

149

164

167

162

158

10.7

11.6

11.4

13.6

13.9

FY19

Q2 Q3 Q4 Q1

FY20

846

875

888

893

829

117 112 98 78

13.8

12.8

11.0

8.7

8.1

FY19

Q2 Q3 Q4 Q1

FY20

[EUR m][EUR m]

Q1 FY20 Division Performance

ATV

IPC DSS

PMM

[EUR m] [EUR m]

› Q1 FY20: Seasonal weakness

for wind and home appliances, resilient solar, sluggish drives,

and a positive development for

traction and power transmission

Revenue

Segment Result

-2%

-5%

-4%

+6%

› Q1 FY20: Identity

solutions and embedded SIM saw increasing sales, whereas the payment bare die and module business declined

› Q1 FY20: Revenue down

q-q due to stock depletion by distributors across many product areas

› Q1 FY20: Impact of lower

revenue compensated by one-offs related to inventory valuation and cost containment

10%

20%

30%

FY16 FY17 FY18 FY19 Q1 FY19 Q2 Q3 Q4 Q1 FY20

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

Adjusted RoCE clearly above WACC

RoCE and adjusted RoCE

22 22

24 24

Q1 FY19 Q2 Q3 Q4 Q1 FY20

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 FY20e

convertible bond buyback share buyback (via put options) dividends

305

212

167

164

202

225

248

› Policy of sustainable

dividend payout

› Stable dividend: €0.27

› Dividend payment of

€336m on 25 Feb 2020

283

336

2,450

[EUR cent]

308

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

Opex still 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.

61 55 57 63 53

157

159

151

236

243

230

243

11.1%

10.7%

10.6%

10.8%

10.6%

12.0%

11.9%

12.1%

11.2%

12.7%

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

General & Administration Selling R&D % of sales

218

212

214

222

Selling, General & Administration Research & Development*

204

Inventory increase due to revaluation

Working capital*

Inventories

Trade receivables

Trade payables

[EUR m]

* For definition please see page "Notes".

[EUR m]

867

891

848

888

809

40 40

Q1 FY19 Q2 Q3 Q4 Q1 FY20

Trade receivables DSO*

[EUR m]

1,190

1,128

1,079

1,089

923

Q1 FY19 Q2 Q3 Q4 Q1 FY20

Trade payables DPO*

[EUR m]

[days]

979

1,452

1,475

1,511

1,583

Q1 FY19 Q2 Q3 Q4 Q1 FY20

[days]

1,591

1,706

1,701

120

124 124

115

132

Q1 FY19 Q2 Q3 Q4 Q1 FY20

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%

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

~1.3bn

945

760

833

812

861

~1.0bn

1,451

Investments* Depreciation & Amortization

Increase in gross cash and net cash position driven

by Cypress acquisition financing activities

2,306

1,882

3,435

3,779

4,859

3328

1,533

1,549

1,535

1,556

1,531

773

333

1,900

2,223

3,328

FY19

Q2 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

Liquidity development

Infineon has a balanced maturity profile and an

investment grade rating (BBB)* from S&P

12-year

USPP

Notes

Apr 2028

10-year

USPP

Notes

Apr 2026

8-year

USPP Notes

Apr 2024

Eurobond Mar 2022

FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28

$350

$235

€500

Maturity profile

Note: Additional debt with maturities between 2019 and 2023 totaling €28m of which €10m repayments relate to Campeon. 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. * On 3 Jun 2019, S&P placed Infineon on CreditWatch with negative outlook in relation to the Cypress acquisition.

[EUR m; US$ m; nominal values]

€171

Campeon

final re-

payment

Oct 2020

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 CPU central processing unit DC direct current DC-DC direct current - direct current DPM digital power management

eCall emergency call

ECU electronic control unit

EPS electric power steering

eSIM embedded subscriber identity module

eSIM embedded SIM

EV electric vehicle

FPGA field programmable gate array

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

IVN in-vehicle networking

Glossary (2 of 2)

IPM intelligent power module

iPol image processing line

IRF International Rectifier

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

PHEV plug-in hybrid electric vehicle

Pol point-of-load

PV photovoltaic 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 SW software 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 Informa Tech (former IHS Markit Technology) – reports, data and information referenced in this document:

The Informa Tech reports, data and information referenced herein (the "Informa Tech Materials – mostly former IHS Markit Technology Materials") are the copyrighted property of Informa Tech Research Ltd. and its subsidiaries ("Informa Tech") and represent data, research, opinions or viewpoints published by Informa Tech, and are not representations of fact. The Informa Tech 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 Informa Tech Materials are subject to change without notice and neither Informa Tech nor, as a consequence, Infineon have any duty or responsibility to update the Informa Tech Materials or this publication as a result. Informa Tech 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 Informa Tech 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 Informa Tech 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 Informa Tech Materials. The "IHS Markit" brand and logo have been licensed for use by Informa Tech. The "IHS Markit" brand and logo and any thirdparty trademarks used in the IHS Markit Technology Materials are the sole property of IHS Markit Group or their respective third-party owners.

Specific disclaimer for IHS Markit – reports, data and information referenced in this document:

The IHS Markit reports, data and information referenced herein (the "IHS Markit Materials") are the copyrighted property of IHS Markit Ltd. and its subsidiaries ("IHS Markit") and represent data, research, opinions or viewpoints published by IHS Markit, and are not representations of fact. The IHS Markit Materials speak as of the original publication date thereof and not as of the date of this document. The information and opinions expressed in the IHS Markit Materials are subject to change without notice and neither IHS Markit nor, as a consequence, Infineon have any duty or responsibility to update the IHS Markit Materials or this publication. Moreover, while the IHS Markit Materials reproduced herein are from sources considered reliable, the accuracy and completeness thereof are not warranted, nor are the opinions and analyses which are based upon it. IHS Markit and the trademarks used in the Data, if any, are trademarks of IHS Markit. Other trademarks appearing in the IHS Markit Materials are the property of IHS Markit or their respective owners.

Cover photography:

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

Financial calendar

Date

Location

Event

5 May 2020*

FY20 Results

May 2020

Call: IPC Business Update

27 May 2020

Milan

Equita

Conference 2020

- 4 Jun 2020

Berlin

Deutsche

Bank German, Swiss & Austrian Conference

– 10 Jun 2020

Paris

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

ATV Call

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

PCIM, Nuremberg, 7 May 2019

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 Rockwell Automation User Manual

Specifications and Main Features

Frequently Asked Questions

User Manual