Company Presentation Infineon Technologies AG February 2020

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Company Presentation Infineon Technologies AG February 2020
Company Presentation
Infineon Technologies AG
February 2020
Company Presentation Infineon Technologies AG February 2020
Table of contents

    1        About Infineon

    2        Market and business development

    3        Additional company information

2020-02-05                    Copyright © Infineon Technologies AG 2020. All rights reserved.   2
Company Presentation Infineon Technologies AG February 2020
Infineon at a glance

Business Segments                                                           Employees
Digital Security                                                            41,400 employees worldwide
                                                 Automotive                 (as of Sept. 2019)
Solutions (DSS)
                                  8%             (ATV)
                                                                                                                                   Europe
                                                                                                                                   18,600
Power Manage-                                                                           Americas
ment & Multi-              30%           44%                                             3,900
market (PMM)
                                                                                                                          Asia/Pacific
                                                                                                                            18,900
                                   18%
Industrial Power                                                            37 R&D locations
Control (IPC)                              Revenue FY 2019                  17 manufacturing locations

Financials                                                                  Market Position
                                                        8,029
                                 7,063   7,599                                     Automotive                     Power            Security ICs
[EUR m]            6,473
    5,795

      15.5%        15.2%         17.1%   17.8%         16.4%

        897         982          1,208   1,353          1,319                           #2                        #1                     #2
      FY 15        FY 16         FY 17   FY 18          FY 19                    Strategy Analytics,            Informa Tech
                                                                                                                                   ABI Research,
                                                                                     April 2019              (former IHS Markit
                                               Segment Result                                                                     September 2019
   Revenue           Segment Result                                                                             Technology),
                                               margin                                                         September 2019

2020-02-05                                 Copyright © Infineon Technologies AG 2020. All rights reserved.                                         3
Company Presentation Infineon Technologies AG February 2020
2020-02-05   Copyright © Infineon Technologies AG 2020. All rights reserved.   4
Company Presentation Infineon Technologies AG February 2020
Global megatrends underline
the increasing importance of microelectronics

             Demographic & social change                                    Climate change & resource scarcity

                    Urbanization                                                          Digital transformation

2020-02-05                         Copyright © Infineon Technologies AG 2020. All rights reserved.                 5
Company Presentation Infineon Technologies AG February 2020
Business growth in the semiconductor market
is driven by four key trends

      Energy efficiency

      Mobility

      Security

      IoT & big data

2020-02-05                Copyright © Infineon Technologies AG 2020. All rights reserved.   6
Company Presentation Infineon Technologies AG February 2020
Energy efficiency

                                                                        Application examples
  The challenges of rising demand for energy and                        › Empowering the energy revolution: Leading
  growing depletion of fossil resources call for                          power devices and subsystems for renewables
  smarter, more efficient ways of generating,                             and efficient energy transmission and storage
  transmitting and consuming energy.                                    › Turning eMobility into reality: Innovative IC
  Semiconductors reduce the energy consumed by                            solutions for xEVs, eBikes and eScooters
  electronic devices, enabling systems that make
                                                                        › Ensuring uninterruptible power supplies:
  the way we live and work greener. As the global
                                                                          Power components for reliable UPS systems
  leader in power semiconductors, Infineon's
  products and solutions allow energy to be                             › Optimizing performance: MCUs and power
  generated more efficiently and from renewable                           semiconductors for smart motor controls /
  sources.                                                                drives
                                                                        › Advancing the future of light: LED driver ICs,
                                                                          MOSFETs and sensors for lighting applications

2020-02-05                         Copyright © Infineon Technologies AG 2020. All rights reserved.                    7
Company Presentation Infineon Technologies AG February 2020
Mobility

  Megatrends like demographic shifts, social
  change and urbanization are accentuating the                            Application examples
  need to manage rising public and private traffic                        › Making mobility clean: Efficient
  volumes while mitigating the environmental and                            semiconductors for electric drivetrains and CO2
  climate impact of this traffic. Sustainable, smart                        reduction
  mobility solutions are essential given the growing
                                                                          › Making autonomous driving safe and
  scarcity of natural resources.
                                                                            reliable: Chip solutions for automated driving
  Through its semiconductors, Infineon is building                          applications (from ADAS to autonomous
  more intelligence, responsiveness and autonomy                            driving)
  into transport systems – enabling mobility
                                                                          › Making mobility smart: Broad product
  solutions ranging from eBikes through hybrid and
                                                                            portfolio of sensors and security ICs for
  fully electric vehicles to underground and high-
                                                                            individual convenience and connectivity
  speed trains.

2020-02-05                           Copyright © Infineon Technologies AG 2020. All rights reserved.                     8
Company Presentation Infineon Technologies AG February 2020
Security

  In an increasingly digital world with more and                          Application examples
  more connected devices, people want to interact                         › Securing eGovernment: Security solutions for
  and communicate in a secure way that protects                             electronic ID applications
  their data against theft and misuse. Securing
  electronic devices and infrastructures is a number                      › Building trust in security: Hardware-based
  one priority. Addressing this need for security is                        security solutions for reliable device
  one of Infineon's key competencies.                                       authentication and trusted computing
  With more than 30 years of experience in the                            › Protecting smart factories: High-quality ICs
  security market, Infineon offers tailored and                             and state-of-the-art encryption technologies for
  ready-to-use security solutions serving a wide                            highly secure M2M communication
  range of applications from smart cards, passports                       › Safeguarding connected cars: Advanced
  and cars to new and emerging use cases.                                   security solutions for connected mobility

2020-02-05                           Copyright © Infineon Technologies AG 2020. All rights reserved.                     9
Company Presentation Infineon Technologies AG February 2020
IoT & big data

                                                                           Application examples
  In today's digital world, more and more things are                       › Sensing the connected world: Highly reliable
  connected to the Internet. The volume of data                              and precise sensors for automotive, industrial
  generated, transferred and stored is rising day by                         and general applications
  day, so too is the need for high-speed and low-
  latency communication.                                                   › Implementing Industry 4.0: Innovative IC
                                                                             solutions for digital automation and robotics
  With its sensors, controllers, power devices and
  authentication products, Infineon enables smart,                         › Driving hyper-scale data centers and cloud
  secure and power-efficient IoT solutions for smart                         computing: Cutting-edge power usage
  devices, homes, cities, factories and vehicles. It                         effectiveness (PUE) for server farms and
  provides cutting-edge power solutions for data                             reliable TPM solutions to secure data in the
  centers and servers as well as leading RF                                  cloud
  chipsets supporting mission-critical infrastructures                     › Enabling smart infrastructures: Advanced
  like 5G.                                                                   semiconductor solutions for smart cities, smart
                                                                             grids and next-gen wireless communication

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Our strategy is targeted at value creation through
sustainable profitable growth

                   Focus                    Technology leadership                                       System understanding
 › Focus on fastest growing           › Leverage core competencies
   segments of semi market                                                                           › Create value for customers
                                        in different end markets to
                                                                                                       through system understanding
 › Tackle global megatrends             maximize ROI

                Auto                Power                                 RF and sensors                           Security

             System leader       #1; system and                          Broad RF and sensor                          #1 in
             in automotive      technology leader                         technology portfolio                  security solutions

                                    Average-cycle financial targets

               ~9% p.a.                               ~17%+                                                 ~15%
              Revenue growth               Segment Result margin                                       Investment-to-sales
                                                                                                       (thereof capex*: ~13%)

* Infineon reports under IFRS

2020-02-05                         Copyright © Infineon Technologies AG 2020. All rights reserved.                              11
On 3 June 2019, Infineon has announced
to acquire Cypress

     What has been decided?                 What is the outcome?                                   What are the preconditions?

  › Infineon will acquire          › Infineon becomes an even                                      › End of August 2019,
    Cypress for €9.0 billion         stronger system solution                                        Cypress ​shareholders
    (US$23.85 per share)             leader in high-growth markets                                   accepted Infineon’s
  › Cypress is a US-based,           automotive, industrial, IoT                                     acquisition offer
    global chip manufacturer       › Higher focus on structural                                    › Regulatory and antitrust
    with ~6,000 employees,           growth, broader geographic                                      approvals ongoing
    headquartered in San Jose,       footprint, more customers,
                                                                                                   › Closing of the deal is
    California                       greater revenue share in
                                                                                                     expected at the end of the
                                     distribution, lower capital
                                                                                                     first calendar quarter 2020
                                     intensity
                                                                                                     or at the beginning of the
                                   › Top 10 global semiconductor                                     next calendar quarter
                                     player
                                   › Improved value creation

2020-02-05                       Copyright © Infineon Technologies AG 2020. All rights reserved.                             12
The deal shapes a portfolio that perfectly links
the real and the digital world

                              Battery-powered devices
                              Coin cell-powered devices

             Industrial IoT

Consumer IoT
                                                                                                                    Connectivity

                                Real-world                                  Software                                                          Digital
       Drives
                               applications                                Ecosystem                                                          world

        Power
        supplies

                        5G

                                     Automotive

    Infineon         Cypress
Sense: sensors         Compute: microcontrollers,       Actuate: power semiconductors                   Connectivity: Wi-Fi, Bluetooth, Bluetooth Low Energy
                                memories                                                                              USB/USB-C

2020-02-05                                        Copyright © Infineon Technologies AG 2020. All rights reserved.                                       13
As a combined company, Infineon will be
a top 10 global semiconductor player

                                                                  ca. €10bn                    top 10
                                                                     annual revenue           semiconductor
                                                                                                company

                                                                  ca. 47,400                 ca. 9,200
                                                                    total employees          R&D employees

                                                                             leading player
                                                                  in automotive, power management,
                                                                 embedded control, security systems,
                                                              differentiated memories, wireless combos

                                                                        9%+ I 19% I 13%
                                                                             new target operating model

2020-02-05          Copyright © Infineon Technologies AG 2020. All rights reserved.                       14
Table of contents

    1        About Infineon

    2        Market and business development

    3        Additional company information

2020-02-05                    Copyright © Infineon Technologies AG 2020. All rights reserved.   15
After a decline in 2019, the global semiconductor
market is predicted to recover in 2020

 Global Semiconductor Market
 Market size in billion US-Dollar

     Market size (revenue)                            Forecast revenue range

Source: WSTS for historical data. Forecast:  of WSTS, Informa Tech (former IHS Markit Technology), Gartner, IC Insights; last update January 31, 2020

2020-02-05                                             Copyright © Infineon Technologies AG 2020. All rights reserved.                                   16
Infineon gained market share in all target markets

           Automotive                                          Power discretes
         semiconductors                                         and modules                                                       Security ICs
    total market in 2018: $37.7bn                        total market in 2018: $21.0bn                                    total market in 2018: $3.2bn

         NXP                        12.0%                 Infineon                       19.9% (+1.2-pt)
                                                                                                                                   NXP                   24.8%
    Infineon                     11.2% (+0.4-pt)         ON Semi                           8.9%

   Renesas                            8.9%                STMicro                   5.4%
                                                                                                                               Infineon       24.3% (+0.1-pt)
              TI                      8.2%              Mitsubishi                 4.8%

    STMicro                         7.6%                    Vishay                4.5%
                                                                                                                             Samsung                         17.4%
       Bosch                   5.4%                       Toshiba                 4.5%

   ON Semi                   4.9%                               Fuji             3.6%
                                                                                                                              STMicro                 10.1%
       Rohm             2.8%                             Renesas                3.3%

             ADI        2.6%                                 Rohm             2.6%
                                                                                                                          CEC Huada                  8.5%
    Toshiba            2.6%                             Semikron              2.5%

Source: Strategy Analytics, "2018 Automotive        Source: Based on or includes content supplied by                 Source: ABI Research, "Smart card & secure ICs",
        Semiconductor Vendor Share",                        Informa Tech (former IHS Markit                                  September 2019
        April 2019                                          Technology), "Power Semiconductor Market
                                                            Share Database – 2018", September 2019

2020-02-05                                         Copyright © Infineon Technologies AG 2020. All rights reserved.                                             17
Infineon’s business stays robust – even under
challenging market conditions

                                                            Revenues and earnings
                                                            in Q1 FY 2019 to Q1 FY 2020

                                                            [EUR m]

                                                             1,970            1,983      2,015      2,062
                                                                                                               1,916

                                                             18.2%
                                                                              16.7%      15.7%                 15.5%
                                                                                                   15.1%

                                                               359              332       317       311         297
                                                           Q1 FY19          Q2 FY19     Q3 FY19    Q4 FY19    Q1 FY20

                                                                                                          Segment
                                                             Revenue              Segment Result
                                                                                                          Result margin

2020-02-05          Copyright © Infineon Technologies AG 2020. All rights reserved.                                18
Infineon is operating in all major regions of the world

Revenues per region FY 2019

               13%
                                                                                                   35%
 therein:
 USA           11%
                                                                                                                    15%
             Americas
                                              30%                             therein:
                                                                              China                27%
                                                                                                            Asia / Pacific (without
                                                                                                            Japan, Greater China)
                        therein:
                                              15%                                           Greater China
                        Germany

                                   Europe, Middle East,
                                      Africa (EMEA)                                                                7%

                                                                                                                  Japan

2020-02-05                           Copyright © Infineon Technologies AG 2020. All rights reserved.                          19
Financial Year 2019
Revenue Split by Segment

                                               FY 2019 Revenue: € 8,029 m
Digital Security Solutions                                           OOS+C&E*                                     Automotive
                                                                      € 21 m
                           € 642 m                                                                                  € 3,503 m

                                                                    8%

                                                                                           44%
Power Management                                 30%                                                              Industrial Power
& Multimarket                                                                                                     Control

                                                                       18%

                        € 2,445 m                                                                                   € 1,418 m
* Other Operating Segments; Corporate & Eliminations

2020-02-05                                      Copyright © Infineon Technologies AG 2020. All rights reserved.                      20
Automotive shapes the future of mobility with cleaner,
safer and smarter cars

                                                 Core applications:
                                                 Assistance systems and safety systems, Comfort
                                                 electronics, Powertrain, Security

                                                [EUR m]

                                                                       875              888        893
                                                    846                                                      829

                                                   13.8%
                                                                     12.8%
                                                                                        11.0%
                                                                                                  8.7%       8.1%

                                                    117                 112              98        78         67
                                                 Q1 FY19            Q2 FY19            Q3 FY19   Q4 FY19   Q1 FY20

                                                   Revenue                Segment Result           Segment Result margin

2020-02-05           Copyright © Infineon Technologies AG 2020. All rights reserved.                                21
Industrial Power Control empowers a world of
unlimited energy

                                                Core applications:
                                                Energy generation, Energy transmission, Energy
                                                consumption (Home appliances, Industrial vehicles),
                                                Industrial drives, Traction, Industrial power supplies,
                                                Industrial Robotics

                                               [EUR m]

                                                   352                347              357       362
                                                                                                            334

                                                  19.6%              19.3%
                                                                                                           18.6%
                                                                                       15.4%     16.3%

                                                    69                 67               55        59         62
                                                Q1 FY19            Q2 FY19            Q3 FY19   Q4 FY19   Q1 FY20

                                                  Revenue                Segment Result           Segment Result margin

2020-02-05          Copyright © Infineon Technologies AG 2020. All rights reserved.                                22
Power Management & Multimarket creates solutions
for power management, sensing, data transmission

                                               Core applications:
                                               Audio amplifiers, Brushless direct current motor,
                                               Cellular communications infrastructure, Charging
                                               stations for electric vehicles, HiRel, Internet of Things,
                                               LED and conventional lighting systems, Mobile
                                               devices, Power management

                                              [EUR m]

                                                  617                                  598       639       593
                                                                     591
                                                 25.1%
                                                                    22.3%             24.2%     23.9%     24.6%

                                                  155                132               145       153       146

                                               Q1 FY19            Q2 FY19            Q3 FY19   Q4 FY19   Q1 FY20

                                                 Revenue                Segment Result           Segment Result margin

2020-02-05         Copyright © Infineon Technologies AG 2020. All rights reserved.                               23
Digital Security Solutions delivers security
for a connected world

                                                  Core applications:
                                                  Authentication, Automotive, Government identification
                                                  documents, Internet of Things, Mobile communications,
                                                  Payment systems, Ticketing, access control, Trusted
                                                  Computing

                                                 [EUR m]

                                                                        164               167      162        158
                                                     149

                                                                                                   13.6%     13.9%
                                                    10.7%              11.6%             11.4%
                                                    16                   19               19        22         22
                                                  Q1 FY19            Q2 FY19            Q3 FY19   Q4 FY19   Q1 FY20

                                                    Revenue                Segment Result           Segment Result margin

2020-02-05            Copyright © Infineon Technologies AG 2020. All rights reserved.                                24
Close customer relationships are based on
system know-how and app understanding

             EMS partners                                         Distribution partners

2020-02-05                  Copyright © Infineon Technologies AG 2020. All rights reserved.   25
Table of contents

    1        About Infineon

    2        Market and business development

    3        Additional company information

2020-02-05                    Copyright © Infineon Technologies AG 2020. All rights reserved.   26
Worldwide manufacturing sites
frontend and backend

     San José      Leominster        Warstein                    Dresden                           Kulim              Beijing

                                                                                                                       Wuxi

                                                                                                                     Cheonan

       Mesa
                                                                                                                    Singapore

     Temecula        Tijuana    Regensburg                   Villach                    Cegléd       Melaka           Batam

    Frontend    Backend                                                                                       As of September 2019

2020-02-05                       Copyright © Infineon Technologies AG 2020. All rights reserved.                          27
Our global Research and Development activities

About 12 percent
of Infineon's annual revenue goes into Research and
Development (R&D). In fiscal year 2019, R&D
investments amounted to 945 million euros.

7,755 R&D employees
worldwide develop new products, technologies and
platforms as well as new manufacturing technologies.

                                                                     37 sites in 15 countries:
26,570 patents in the overall portfolio
                                                                     Americas           Chandler, El Segundo, Leominster, Mesa, Milpitas, San
show a high level of innovative strength and long-term                                  José, Andover and Warwick (all USA)
competitiveness. In fiscal year 2019 alone, Infineon                 Asia               Beijing and Xi'an (both China); Bangalore (India); Tokyo
registered 1,760 new patents.                                                           (Japan), Seoul (Korea); Ipoh, Kulim, Melaka (all
                                                                                        Malaysia); Muntinlupa (Philippine); Singapore
                                                                     Europe             Graz, Linz and Villach (all Austria); Herlev (Denmark);
                                                                                        Augsburg, Dresden, Duisburg, Erlangen, Karlsruhe,
                                                                                        Neubiberg near Munich, Regensburg and Warstein (all
Numerous innovative ecosystems                                                          Germany); Le Puy-Sainte-Réparade (France); Bristol and
                                                                                        Reigate (both Great Britain); Padua and Pavia (both Italy);
with tech companies, universities and research                                          Nijmegen (The Netherlands); Bucharest (Romania)
institutes are of great importance to Infineon.
                                                                                                                              As of September 2019

2020-02-05                          Copyright © Infineon Technologies AG 2020. All rights reserved.                                         28
Our competitive advantage:
Differentiating as quality leader

                                                Our path
                                                We do what we promise.
                                                That's quality made by Infineon.

                                                Our aspiration
                                                Zero defect regarding the committed
                                                › functionality
                                                › reliability
                                                › time
                                                › volume & cost

                                                Our foundation
                                                International standards such as ISO 9001,
                                                IATF 16949, AS 9100, IEC 17025

2020-02-05            Copyright © Infineon Technologies AG 2020. All rights reserved.       29
Responsible action, sustainable profitable growth

                                                         Infineon ranks among the 10% most
                                                         sustainable companies in the world

                                                         › Sustainability at Infineon includes social,
                                                           ecological and economic values
                                                         › Infineon was one of the first semiconductor
                                                           companies to voluntarily commit to the
                                                           Ten Principles of the UN Global Compact
                                                         › Infineon meets global societal challenges such
                                                           as climate protection, energy efficiency and
                                                           resource management with innovative products
                                                         › External evaluation of the commitment:
                                                            – MSCI ESG Research rates Infineon with AA
                                                            – Included in the Dow Jones Sustainability™
                                                              World Index for the fifth time
                                                            – Received "Gold Status" of the rating agency
                                                              EcoVadis for the fifth time

2020-02-05           Copyright © Infineon Technologies AG 2020. All rights reserved.                     30
Corporate Social Responsibility
We create a net ecological benefit

Our products and solutions enable a net ecological benefit, equal to the average
annual CO2 emissions from electricity consumption of about 86 million people living
in Europe1)

       CO2 burden2)                                                                                                                                                          CO2 savings3)
         of around                                                                                                                                                             of around
      1.40 million tons                                                                                                                                                      56 million tons
      CO2 equivalents                                                                Ratio around 1:40                                                                      CO2 equivalents

   Net ecological benefit: CO2 emissions reduction of more than 54 million tons

1) Based on the average electricity consumption of private households in Germany and official energy conversion factors.
2) This figure considers manufacturing, transportation, function cars, flights, materials, chemicals, water/wastewater, 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.
3) 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, servers, renewable energy (wind, photovoltaic), mobile phone chargers as well as drives. CO₂ savings are calculated on the basis of potential savings of technologies in which semiconductors are
used. The CO2 savings are allocated on the basis of Infineon market share, semiconductor content and lifetime of technologies concerned, based on internal and external experts' estimations. Despite the fact that CO₂
footprint calculations are subject to imprecision due to the complex issues involved, the results are nevertheless clear.

2020-02-05                                                               Copyright © Infineon Technologies AG 2020. All rights reserved.                                                                         31
Business Continuity
Integrated management

                                                                                                                   Environmental
              Real Estate                                                                                            Protection,                                            Business &
                                                                 Loss & Fraud
               & Facility                                                                                          Sustainability &                                         Operations
                                                                 Investigations
              Management                                                                                              Energy                                                 Support
                                                                                                                    Management

                                                             Business Continuity
                                                                                                                                                                             Security &
                    Asset                                    ISO 27001*                                ISO 50001**                                                             Crisis
                  Protection                                 ISO 14001*                                OHSAS 18001*                                                         Management
                                                             ISO 22301***

              Corporate                                           Information/                                           Business
                                                                                                                                                                              Export
                Social                                           IT Security &                                           Continuity
                                                                                                                                                                            Compliance
             Responsibility                                     Data Protection                                           Planning

*ISO 27001/14001/OHSAS 18001 worldwide certification scheme; ** ISO 50001 certified at EU sites; ***ISO 22301 certified in Villach, Dresden recommended for certification

2020-02-05                                                            Copyright © Infineon Technologies AG 2020. All rights reserved.                                                     32
Infineon's employees create a better future together

Andreas Dorfner                        Avni Bildhaiya                                                 Thomas Indlekofer
Application Engineer                   Digital Design Engineer                                        Quality Manager
"It's exciting to see how a            "Our AURIX™ Microcontroller                                    "Being part of Infineon means
traditional technology like radar      helps save lives and prevent                                   working at the forefront of green
can make life easier by turning        accidents by activating a car's                                technologies like electromobility."
lights on when someone enters a        breaks in emergency situations."
room."

             At Infineon, more than 41,400 people from over 100 countries work together
             at more than 70 sites around the world (as of Sept. 2019) toward one mission:
                               to make life easier, safer and greener.

                       For more information please visit www.infineon.com/career

2020-02-05                          Copyright © Infineon Technologies AG 2020. All rights reserved.                                 33
Building for tomorrow´s success
Infineon Technologies Austria AG
Fiscal year 2019
Company overview
 Fiscal Year 2019 (as of Sept. 30th 2019)
                                                                                Linz (R&D)
 Revenue                 €   3,113.8 Mio.
                                                                                177
 Earnings before tax     €     306.4 Mio.
 Investment              €     308.1 Mio.                                                                     Vienna (Sales)
 tangible assets              €       307.1    Mio.                                                           11
 intangible assets            €         1.0    Mio.

 Employees                          4,609
 R&D Expenditure                       17      %
 in % of Revenue                                                 4,609                                       Graz (R&D)
                                                                 employees                                   437

                                                                                                            Klagenfurt (IT)
 Austrian subsidiaries                                                                                      191
 DICE, Linz                                                                                                 international headquarters-functions
 IT Services, Klagenfurt
 KAI, Villach
                                                                             Villach (R&D, P, G, IT)
 Foreign subsidiaries                                                        3,748
 Infineon Technologies Romania SCS (R&D)                                     international headquarters-functions
 Infineon Technologies (Kulim) Sdn Bhd, Malaysia (P)

Linz                       Vienna                      Graz                                    Klagenfurt            Villach

 2019-12-10                               Copyright © Infineon Technologies AG 2019. All rights reserved.                            35
Extensive competencies

             Besides Germany, Infineon Austria is the
             only subsidiary within the group, that
             combines research & development,
             production and global business
             responsibility.

               The board of Infineon Technologies Austria AG
                         Dipl.-Ing. Dr. Sabine Herlitschka, MBA
                                  CEO and Technology Director
                                  Dipl.-Ing. (FH) Oliver Heinrich
                                                            CFO
                                          Dr. Thomas Reisinger
                                             Operations Director

2019-12-10                      Copyright © Infineon Technologies AG 2019. All rights reserved.   36
Energy-saving chips from Infineon can be found…

                                                                                                                                                    … among the top 10*
                                                                                                                                                 manufacturers of wind power
                                                                                                                                                    and solar plants (2018)**

  … in over 50 % of all data
     centers worldwide

                                                                                                                                                 … in 15 of the 20 best-selling
                                                                                                                                                  electric and plug-in hybrid
* Infineon is serving the top-10 but not necessarily as a sole supplier.
**by shipped capacity in MW: Wood Mackenzie, Power & Renewables, "Historic wind turbine
 OEM market share”, March 2019 and by shipped capacity in MW: based on or includes content
                                                                                                                                                    vehicles worldwide (2018)
supplied by Informa Tech (former IHS Markit Technology), "PV Inverter Market Tracker –
Q3 2019“, October 2019

2019-12-10                                                                     Copyright © Infineon Technologies AG 2019. All rights reserved.                          37
Facts & figures*

             Infineon Technologies Austria                                  FY 2018                 FY 2019           Change
             incl. Austrian subsidiaries

             Revenue in million €                                           2,960.8                3,113.8             +5%

             Earnings before tax in million €                                 294.1                     306.4          +4%

             Employees                                                        4,201                     4,609         + 10 %

             Investment in million €                                          178.7                     308.1         + 72 %
             tangible assets                                                    8.5                      1.0

             intangible assets                                                170.2                     307.1         + 80 %
             R&D Expenditure in million €                                      498                      525            +5%
             (in % of revenue)                                                 (17%)                    (17 %)

             Overall purchasing volume: 561 million Euro
             thereof 196 million in Austria and                                                            *Fiscal Year 2018/19,
             thereof 121 million in Carinthia                                                               as of 30 September 2019

2019-12-10                            Copyright © Infineon Technologies AG 2019. All rights reserved.                                 38
Billions to be invested in the Villach site

              New 300-millimeter
                 chip factory

                                                                                                       New R&D-
                                                                                                        building

        New fully automated chip factory                                                          New R&D-building
  Start of construction: First half of 2019                           Start of construction:Autumn of 2018
  Start of production:   End of 2021                                  Implementation:       Spring of 2020
  Total building area:   ~ 60,000 m2                                  Total building area:  ~ 20,000 m²
  Headcount:             ~ 400 highly qualified jobs                  Building capacity:    600 R&D-workplaces, of which
  Volume of investment: ~ € 1.6 billion                                                     350 additional R&D-workplaces
                                                                      Volume of investment: € 50 million
2019-12-10                           Copyright © Infineon Technologies AG 2019. All rights reserved.                 39
Expansion at our R&D-sites in Graz and Linz

                       Graz                                                                           Linz
Start of construction: April 2019                                    Start of construction: April 2019
Implementation:        2020                                          Implementation:        2020
Building capacity:     290 additional R&D jobs                       Building capacity:     400 R&D workplaces, of which
                                                                                            220 additional R&D workplaces

2019-12-10                          Copyright © Infineon Technologies AG 2019. All rights reserved.                40
People are our success

                   + 10 %
                      4,201 4,609           27 %

       FY15 FY16 FY17 FY18 FY19

         Plus 408 workplaces                       Approx. 27 % international
                                                  employees from 68 countries

56 %                                                                          18.4 %

             56 % graduates                           Share of women: 18.4 %

2019-12-10                          Copyright © Infineon Technologies AG 2019. All rights reserved.   41
Strategy 2025 – SMART Growth!
Our road of success

The strategy of
Infineon Austria
has the aim of
making the optimal
contribution to the
Group's goals.

2019-12-10            Copyright © Infineon Technologies AG 2019. All rights reserved.   42
Global business responsibility in Austria
13 product lines from 3 divisions

    Automotive                             Power Management &                                          Industrial Power
                                           Multimarket                                                 Control
   High Voltage Driver                    Power Management ICs                                         Chips & Discretes
   Discretes & Chips                       High Voltage Power Conversion                               Intelligent Power Modules
                                          Low Power ACDC ICs                                           Gate Driver
                                           Enterprise Power
                                          Ultra-Low Voltage Switches
                                           Low Voltage Switches
                                          Medium Voltage Switches
                                          Power Management Controller &
                                          Driver

    Divisions of Infineon
    Product lines Infineon Austria

2019-12-10                           Copyright © Infineon Technologies AG 2019. All rights reserved.                               43
Innovation Fab Villach

 › Competence center for exceptionally thin (up to 40µm)
   silicon wafers
 › Serial production of power semiconductors („Energy saving
   chips“) in 300-millimeter thinwafer technology
 › Manufacturing competencies for MEMS (micro-
   electromechanical systems), e.g. tire pressure sensors
 › Pioneer in Industry 4.0
 › Global competence center for Silicon Carbide (SiC) and
   Gallium Nitride (GaN) of the group

 23,530 m²                                                          11.44 billion chips
 clean room area                                                    (FY 2019)
                   approx. 1,800 product types
                   Wafer-diameters:
                   150 mm, 200 mm, 300 mm

2019-12-10                   Copyright © Infineon Technologies AG 2019. All rights reserved.   44
A holistic approach to sustainability
CO2 balance sheet Infineon Austria

                                                            Production of
                                                            11.44 billion chips
                                                            (FY 2019)
          CO2           burden1                                                                                                                          CO2 savings2
           of around                                                                                                                                       of around
        0.12 million tons                                                                                                                               8.5 million tons
        CO2 equivalents
                                                                                  Ratio ~ 1:68                                                          CO2 equivalents
                                            Net ecological benefit:
                             CO2 emissions reduction of more than 8.4 million tons

                                                                                           … 10.700 flights of a full Airbus A380 from
   This corresponds to…                                                                    Vienna to Singapore.

                                                                                          … 2 times the annual storage capacity
                                                                                          of Austria's forests (approx. 4 million hectare).

 1) This figure considers manufacturing, transportation, function cars, flights, materials, chemicals, water/wastewater, 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.
  2) This figure is based on internally established criteria. The figure relates to the calendar year 2018 and considers the following fields of application: automotive, LED, induction cookers, servers,
 renewable energy (wind, photovoltaic), mobile phone chargers as well as drives. CO₂ savings are calculated on the basis of potential savings of technologies in which semiconductors are used.

2019-12-10                                                           Copyright © Infineon Technologies AG 2019. All rights reserved.                                                                 45
Pioneer in Industry 4.0

                #industry4ward

             › Strengthen competitiveness in Europe

             › As a user we know the challenges, as a supplier we
               offer products for the implementation
             › Development and production closely linked
             › Intelligent control of energy and resource
               consumption
             › Faster, more efficient, more innovative on the market
             › Big Data: capitalize on the added value of generated
               data
             › Consciously designing the jobs of the future
               › New job profiles, e.g. Data Scientist
               › „Apprenticeship 4.0“, „Foreperson training 4.0“

2019-12-10                         Copyright © Infineon Technologies AG 2019. All rights reserved.   46
Excellence in Research & Development

                                                  17 %
                                                                        €
                                                  R&D Expenditure FY 2019:
 One of the strongest industrial                  € 525 million = 17 % of total
 research companies in Austria                              revenue

  1.977

       1,977 staff in R&D =
   more than ¼ of the total R&D                   214 initial patent applications
    staff of the Infineon Group
2019-12-10                         Copyright © Infineon Technologies AG 2019. All rights reserved.   47
Powered by Infineon Austria

European fast charging stations for electric vehicles
›      R&D and production in Villach
›      Silicon Carbide (SiC) energy saving chips
›      1.000 fast charging stations till 2020 in Europe
›      Benefits: Smaller and lighter charging poles, faster charging

    2019-12-10                       Copyright © Infineon Technologies AG 2019. All rights reserved.   48
Powered by Infineon Austria

Radar technology
›      R&D competence from Linz
›      Key technology in semi- and fully automated vehicles
›      Optical distance measurement, warning systems, automatic emergency braking
›      With more than 100 million 77 GHz radar chips sold to date, Infineon is the global technology and
       market leader in this area

    2019-12-10                           Copyright © Infineon Technologies AG 2019. All rights reserved.   49
Powered by Infineon Austria

Wireless Charging
› R&D and production in Villach
› Innovative product solutions for charging
  systems
› More energy-efficient, more simple and faster
› Smartphones, electric tools, household
  appliances, electric toys or medical devices

 2019-12-10                     Copyright © Infineon Technologies AG 2019. All rights reserved.   50
Powered by Infineon Austria

Security chips in Austrian cards and ID‘s
›    R&D competence from Graz
›    Contactless payments with NFC debit cards (Payment Services Austria / Austria Card)
›    Electronic passports (Austrian state printing)
›    Austrian social security card "e-card" (Austria Card / Atos)
›    Security technologies for mobile Near Field Communication applications

2019-12-10                      Copyright © Infineon Technologies AG 2019. All rights reserved.   51
Powered by Infineon Austria

                                                                          3D image sensor
                                                                          ›      R&D competence from Graz
                                                                          ›      The world´s smallest camera
                                                                                 module for integration in
                                                                                 smartphones
                                                                          ›      Face ID: Secure and convenient
                                                                                 authentication for mobile payment
                                                                                 applications and mobile ID
2019-12-10          Copyright © Infineon Technologies AG 2019. All rights reserved.                         52
Powered by Infineon Austria

  Internet growth is driving the use of energy-efficient semiconductors
  ›     R&D competence from Villach
  ›     50 % of all servers worldwide are equipped with Infineon chips
  ›     Consumption of energy for the Internet will increase three times by 2020
  ›     Semiconductors for infrastructure, server capacity, end devices
  ›     The latest generation of chips halve energy losses
2019-12-10                         Copyright © Infineon Technologies AG 2019. All rights reserved.   53
Strengthening R&D excellence
through cooperation

 › Involvement in Silicon Austria
   Developing Austria into a leading high-tech location
   for electronics-based systems

 › Silicon Alps Cluster in Carinthia and Styria
   Austrian technology, innovation and
   microelectronic cluster

 › New endowed professorship for power electronics
   at the University of Innsbruck

 › European project iDev40
   One of the largest European Industry 4.0 projects

 › 6 endowed professorships:
   University Innsbruck:              Power electronics
   Technical University Graz:         Data Science
   Technical University Graz:         Autonomous driving
   Technical University Vienna:       Human-Centered Cyber-Physical
                                                                                                        ~ 141 research
                                      Production and Assembly Systems
                                                                                                        collaborations
     University Klagenfurt &
                                                                                                      in Austria, Europe
     Technical University Graz :      Industry 4.0 – adaptive and connected
                                                                                                          and beyond
                                      production systems
                                                                                                           (FY 2019)
     University Klagenfurt:           Sustainable Energy Management

2019-12-10                          Copyright © Infineon Technologies AG 2019. All rights reserved.                   54
Selection of important cooperation partners

        network in research and             cooperation in education                                cluster and European projects
              education

                                                              competence centers/
                                                              Research centers

                                                                                                                CSR

2019-12-10                        Copyright © Infineon Technologies AG 2019. All rights reserved.                            55
Promoting R&D excellence for the future
                         › IDC (International Day Care Center)
             Children      Toddler group & Kindergarten at two
                           locations
                         › ScienceMINIS
                         › Sponsoring: strengthen STEM skills
                         › International School Carinthia (ISC)
             Pupils
                         › Girls Day
                         › SEMI High Tech University

                         › Summer and Winter School in Villach
             Students    › PhD@Infineon Austria
                         › Infineon Hub at TU Vienna

                         ›   Carinthian International Center
             Employees   ›   Gender Diversity
                         ›   Junior Talent Program
                         ›   Generation management

Since 2014: more than 60,000 children, youths and students
were reached
2019-12-10                     Copyright © Infineon Technologies AG 2019. All rights reserved.   56
Recognitions
2009-2019
Innovation
futurezone Award “5G innovation of the year” for EU-research project “UltimateGaN”                         2019
Fraunhofer study: top 5 of 275 companies in technology management                                          2017
Austrian State Award for Innovation                                                                        2013
Carinthian Innovation and Research Award                                                                   2012, 2009
Quality & Supplier Reliability
EFQM Excellence Award Winner                                                                               2018
Best Joint Innovation & Best Quality Award, Huawei Core Supplier Convention                                2018
Toyota Honor Quality Award                                                                                 2019, 2018
Austrian state prize for corporate excellence                                                              2012
Employer
State-awarded apprenticeship company                                                                       2019
Integration Award “Lehre mit Asyl”, Carinthia                                                              2019
Basic certification audit berufundfamilie                                                                  2019, 2016, 2013
Environmental Protection, Health and sustainability
EMAS Award                                                                                                 2018, 2013, 2009
VCÖ Mobility Prize, regional and national                                                                  2018
Quality seal for workplace health promotion                                                                2018, 2015, 2012, 2009
Further Recognitions
Export Award of the Austrian Economic Chamber                                                              2018
Sabine Herlitschka, Austrian of the year                                                                   2018

2019-12-10                                      Copyright © Infineon Technologies AG 2019. All rights reserved.                     57
From an extended workbench
to a pioneer of digitalization

 2019        Development center DICE in Linz 100% taken over by Infineon
 2018        Construction of a new, fully automated 300 mm chip factory in Villach
             Construction of a new R&D building for 600 R&D workplaces in Villach
             Expansion of the R&D location in Graz by an additional 290 R&D workplaces
             Construction of a new building at the Linz site for 400 R&D workstations
 2017        Global competence center for Silicon Carbide (SiC) semiconductors
 2016        Extended global business responsibility due to integration of International Rectifier
 2015        R&D and production building complex with pilot area Industry 4.0 in Villach
 2013        Start of chip production on 12-inch (300mm) thin wafers
 2006        Competence center automotive & industrial electronics (KAI)
             Opening frontend factory in Kulim, Malaysia
 2004        Founding of IT-Services in Klagenfurt
 2000        Going public of the Infineon Group
 1999        Siemens Semiconductors becomes Infineon Technologies
             Joint venture development center DICE with University in Linz                                  Villach 1974

 1998        Construction of the development center in Graz
 1997        Villach competence center and leading site for power electronics
 1979        Start development center for microelectronics in Villach
             Launch of chip production on 4-inch (100mm) wafers
 1970        Siemens diode production founded in Villach
                                                                                                            Villach site in the 70s

2019-12-10                                Copyright © Infineon Technologies AG 2019. All rights reserved.                             58
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2020-02-05                              Copyright © Infineon Technologies AG 2020. All rights reserved.                 59
Disclaimer
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
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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,
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2020-02-05                                          Copyright © Infineon Technologies AG 2020. All rights reserved.                                 61
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