Infineon Technologies Ag · XETR:IFX

Infineon Technologies — Q2 FY2020 Earnings Presentation

79 slides from Infineon Technologies's earnings presentation, Jun 5, 2020

Slide 1: Second Quarter FY 2020 Quarterly Update
Second Quarter FY 2020 Quarterly Update Infineon Technologies AG Investor Relations
Slide 2: Agenda
Agenda 1 Cypress becomes part of Infineon 2 ESG: targets and achievements 3 Automotive 4 Industrial Power Control 5 Power & Sensor Systems 6 Digital Security Solutions 7 Selected financial figures 2020-06-05 Copyright © Infineon Technologies AG 2020. All rights reserved. 2
Slide 3: Infineon and Cypress create a global top-10 player, new #3 in MCU market
Infineon and Cypress create a global top-10 player, and the new #3 in the overall microcontroller market Semiconductor suppliers Power discretes and modules MCU suppliers 2019 total market: $428bn1) 2018 total market: $21.0bn2) 2019 total market: $17.5bn1) Intel 16.5% Infineon 19.9% #1 Renesas 18.1%
Slide 4: Infineon remains top player in security ICs, NOR Flash, and MEMS microphones
Infineon remains top player in its target markets: security ICs, NOR Flash, and MEMS microphones Infineon is focusing on wearables Security ICs Wi-Fi standalone ICs and IoT but not addressing routers, 2018 total market: $3.2bn 2018 total market: 917m units PCs, notebooks, tablets. NXP 24.8% Media Te
Slide 5: Two complementary companies form a financially stronger and more balanced player
Two complementary companies in many aspects form a financially stronger and more balanced player MCUs System solution connectivity power management leader in high-growth low power Complementary security solutions markets: automotive, differentiated memories product scope sensor systems industrial an
Slide 6: Infineon offers a unique portfolio that links the real and the digital world
Infineon offers a unique portfolio that links the real and the digital world Coin cell-powered devices Battery-powered devices Power supplies Information and data about the real world Industrial IoT Connectivity Real-world Software Digital Drives applications Ecosystem world Smart Home Value additio
Slide 7: Infineon now offers the entire system for IoT
Infineon now offers the entire system for IoT - unlocking new markets and applications lifestyle service wearables robot personal cloud shaver, medical epilator, device toothbrush sensors power smart speaker microph. software and ecosystem motor air con pressure connectivity light smart watch cookin
Slide 8: Infineon has industry's broadest product portfolio covering entire range of auto applications
Infineon has industry’s broadest product portfolio covering entire range of auto applications Body Cluster/ Chassis Powertrain ADAS/AD Infotainment Sensors (magnetic, pressure, radar, current, 3D ToF, TrueTouch®, CapSense®) MCU (Embedded Power ICs, MCU (AURIX™) PSoC™, Traveo™) Memory (NOR Flash, SRA
Slide 9: NOR Flash benefits from growing use of flash-less processing units
NOR Flash benefits from growing use of flash-less processing units (MCUs, GPUs, FPGAs, SoCs) › Advanced process nodes (28 nm and below) no longer offer embedded NOR Flash economically  trends towards off-chip memory › Infineon’s high-density NOR Flash is used as › boot-up memory and › instant-on pr
Slide 10: With the combined portfolio Infineon can offer full system solutions
With the combined portfolio Infineon can offer full system solutions Example: air-conditioning system Indoor Unit Outdoor Unit What makes system solution attractive to customers? Outdoor Fan Connectivity Wi-Fi / MCU Control MCU Bluetooth Dual Motor Connect Frontend Security + PFC › Ease of design (T
Slide 11: Infineon's and Cypress' competencies perfectly fit together for smart wearables
Infineon’s and Cypress’ competencies perfectly fit together; e.g. for smart wearables Processing Security microcontroller eSIM secure element + NFC Memory cloud authentication NOR Flash F-RAM Device protection ESD protection Connectivity battery authentication Wi-Fi/Bluetooth combo IC RF switches, l
Slide 12: Cypress financial performance
Cypress financial performance* numbers may not add up due to rounding Revenue development [$ m] Gross profit [$ m], gross margin 539 575 559 216 212 532 514 202 199 25 0 196 44 ,0% 164 158 20 0 42 ,0% 229 178 170 40 ,0% 15 0 38 ,0% 37.6% 37.7% 38.0% 38.2% 411 401 10 0 36 ,0% 37.3% 310 354 345 50 34
Slide 13: Allocation of Cypress revenue leads to a more balanced portfolio
Allocation of Cypress revenue leads to a more balanced portfolio Infineon_old Cypress Infineon_new DSS DSS revenue by segment1) 8% ~14% DSS PSS ATV ATV ~35% ATV PSS 31% 43% ~45% ~55% ~27% IPC PSS IPC 18% ~10% ~14% › PSoC › Traveo major product groups › USB Type-A › general purpose MCUs › Automotive
Slide 14: Short-term reaping of cost synergies, long-term value creation of revenue synergies
Short-term reaping of cost synergies, long-term value creation of revenue synergies Planned ramp-up of cost synergies Planned ramp-up of revenue synergies €180m €1.5bn G&A €1bn S&M R&D COGS FY21e FY22e FY23e* FY22e FY25e FY28e (A) (B) COGS › Procurement for materials and manufacturing services (A) N
Slide 15: Further improvement of through-cycle target operating model
Further improvement of through-cycle target operating model Target Operating Model Infineon financial performance to approach targets as integration progresses 9%+ Revenue growth (up from “9%”) 19% Segment Result margin (up from “17%”) 13% Investment-to-sales (down from “15%”) 2020-06-05 Copyright ©
Slide 16: Well-defined roadmap how to capture the value of the deal
Well-defined roadmap how to capture the value of the deal (delayed by unpredictable COVID-19 pandemic) Phase 1 Phase 2 Phase 3 (16 Apr 2020 onwards) (2023+) (2025+) › highest priority: › have streamlined global shared › build on full leverage of revenue ensure stability of Cypress’ service center se
Slide 17: After completing the equity part of the refinancing, focus shifts to debt
After successfully completing the equity part of the refinancing, focus will now shift to the debt part › Arranging and syndication of acquisition facility  › Initial equity de-risking in two steps:  2019 › €1.5bn via ABB › €1.2bn via dual-tranche hybrid bond  › Drawdown of acquisition facility a
Slide 18: Infineon with moderate financial leverage post Cypress closing
Infineon with moderate financial leverage post Cypress closing simplified overview; numbers may not add up due to rounding Pre closing Post closing Acquisition financing Assumpt.: all pre-existing Cypress debt paid off Infineon per 31 Mar 2020 [EUR bn] Sources [EUR bn] Infineon per 31 Mar 2020 [EUR
Slide 19: Outlook for Q3 FY20 and FY20 including Cypress
Outlook for Q3 FY20 and FY20 including Cypress Outlook Q3 FY20* Outlook FY20* ~ €8.4bn Revenue €1.9bn to €2.3bn +/- 5% At the mid-point of the revenue guidance: Segment Result At the mid-point of the revenue guidance: positive mid-single digit margin percentage ~12% Investments in FY20 €1.2bn – €1.3
Slide 20: Tight customer relationships, based on system know-how and application understanding
Tight customer relationships, based on system know- how and application understanding ATV IPC PSS DSS EMS partners Distribution partners 2020-06-05 Copyright © Infineon Technologies AG 2020. All rights reserved. 20
Slide 21: Agenda
Agenda 1 Cypress becomes part of Infineon 2 ESG: targets and achievements 3 Automotive 4 Industrial Power Control 5 Power & Sensor Systems 6 Digital Security Solutions 7 Selected financial figures 2020-06-05 Copyright © Infineon Technologies AG 2020. All rights reserved. 21
Slide 22: Our products and innovations are key elements to deal with climate change
Our products and innovations together with an efficient production are key elements to deal with climate change We contribute a CO2 reduction of more than 54 million tons Our net ecologic CO2 benefit is equal to… The average annual 48,700 fully occupied flights The savings of a 1,795 km2 electricity
Slide 23: Infineon will become carbon-neutral by 2030
Infineon will become carbon-neutral by 2030 70% CO2 emissions reduction target in 2025 (Scope 1 and 2 emissions) 1. Avoiding direct emissions and further reducing energy consumption 2. Purchasing green electricity with guarantees of origin for unavoidable emissions 3. Compensate the smallest part by
Slide 24: External recognitions confirm our engagement in contributing to a sustainable society
External recognitions confirm our engagement in contributing to a sustainable society Rating/Score Scale Date MSCI ESG AA CCC to AAA 02/2020 B climate scoring CDP F to A 02/2020 B- water scoring 98th percentile Ecovadis 0 to 100 11/2019 “Gold” award 79 DJ Sustainability™ Dow Jones Sustainability Ind
Slide 25: Appendix
Appendix 1) This figure considers manufacturing, transportation, function cars, flights, materials, chemicals, water/waste water, direct emissions, energy consumption, waste, etc. and is based on internally collected data and externally available conversion factors. All data relate to the 2019 fisca
Slide 27: Infineon and Cypress create the new number 1 in automotive semiconductors
Infineon and Cypress create the new number 1 in the automotive semiconductor universe Automotive semiconductors 2019 total market: $37.2bn Cypress Infineon 11.2% 2.2% 13.4% › Cypress contributed 2.2%-points to the combined automotive semiconductor market share of 13.4% NXP 11.3% › Cypress contribute
Slide 29: xEV growth driven by EU emission regulation
xEV growth driven by EU emission regulation; CO2 reduction of 37.5% by 2030 vs 2021 CO2 emission development and regulations for main regions 200 Japan 2020: US 2020: CO2 emission values [g/km], normalized to NEDC 122 g CO2/km* 125 g CO2/km 150 No CO2 reduction since 2016! Necessity for significant
Slide 30: Incremental demand of power semiconductors is a significant opportunity
The incremental demand of power semiconductors is a significant opportunity 2019 average xEV semiconductor content by degree of electrification 48 V / MHEV FHEV / PHEV BEV $29 $785 $37 $775 $305 $350 $90 $0 $531 $19 $19 $62 $5 $62 $14 $14 $19 $355 $355 $355 $0 xEV others** xEV Power** Non PT* xEV µC
Slide 32: Vision Zero – AD requires failure-tolerant availability of the system
Vision Zero – AD requires failure-tolerant availability of the system in the environment, “better than a human” A failure-tolerant system with high availability relies on dependable key functionalities Driver Sense Interpret & decide Act Dependable Sensors Dependable Computing Dep. Actuators Camera
Slide 33: Increased sensor requirements drive the content in the next five years
Increased sensor requirements drive the content in the next five years and beyond More sensors required for any next level of automation NCAP 5 Star, AD L2 AD L2+/L3 AD L4/L5 Automatic emergency brake/ forward collision warning Application* Parking assist Valet parking Lane keep assist Highway assis
Slide 34: ADAS/AD semi growth driven by radar and camera sensor modules
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 NCAP 5 Star/AD L2 AD L2+ AD L3 AD L4/L5 L2 vehicles in 2020: ~6m L2+ in 2022: ~1m L3 in 2025: ~1.5m L4/L5 vehicles in 2030: ~4m L2+ in 2
Slide 36: Infineon's portfolio covers the entire range of power and frequency
Infineon's portfolio covers the entire range of power and frequency What is a power switch? How are power switches categorized? 10 MW When turned on power  current flows = When turned off 1 MW  current is blocked IGBT Module What counts? 100 kW › Losses in on-state (R(DS)on) SiC › Heat dissipation
Slide 37: Infineon's discrete power portfolio is separated by voltage classes
Infineon's discrete power portfolio* is basically separated by voltage classes Silicon-based power switches Compound semiconductors 6,500 V IPC territory 4,500 V IGBT CoolSiC™ MOSFET 3,300 V roadmap modules 1,700 V discrete IGBTs 1,200 V IGBTs SiC MOSFET today high-voltage MOSFETs 900 V (discrete, m
Slide 38: Three strategic levers to outgrow the power semi market
Three strategic levers to outgrow the power semi market: "core – adjacent – new"  Adjacent  Core Controller Gate driver switch application translates e.g. motion triggers low-power signal signal into control, power appropriate conversion gate input  Grow in adjacent fields  Strengthen core › Inv
Slide 39: Second generation CoolSiC Trench MOSFET will increase the addressable market
Second generation (2nd Gen.) CoolSiC™ Trench MOSFET will increase the addressable market 1st Gen. CoolSiC™ Trench MOSFET 2nd Gen. CoolSiC™ Trench MOSFET is the leading technology today is in advanced development phase 1st Gen. with lowest losses 2nd Gen. will expand the lead 1,2 › Enhanced power han
Slide 40: Siltectra: Status of implementation of Cold Split technology
Siltectra: Status of implementation of Cold Split technology Process tools Clean room Process flow › Design and production of › Clean room ready for › Integration of individual semi-automated process tool manufacturing by end of process steps into complete park completed in Dresden calendar year 202
Slide 41: Infineon is ready to support and shape the growing SiC device market
Infineon is ready to support and shape the growing SiC device market SiC device market revenue Today › Acceleration of revenue growth › Leading Infineon technology with [US$ m] from 2023 onwards 1st Gen. CoolSiC™ Trench MOSFET 2500 CAGR(18-24): 29% › Already broad, fast growing portfolio › System ex
Slide 43: Clear leader in discrete IGBTs and IGBT modules; IPMs strengthened again
Clear leader in discrete IGBTs and IGBT modules; IPMs strengthened again Discrete IGBTs IPMs IGBT modules** 2018 total market: $1.31bn 2018 total market: $1.68bn 2018 total market: $3.25bn Infineon 37.4% (+ 0.7-pt) Mitsubishi 32.3% Infineon 34.5% (+1.7-pt) ON Semi 9.6% ON Semi 18.9% Mitsubishi 10.4%
Slide 44: Extensive power module portfolio addresses the whole range of drives applications
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 75 kW 370 W 500 kW 500 kW 10 MW › high positioning accuracy › performance and reliability › safety Requirements › fast response with
Slide 45: Infineon is a key player in the PV market
Infineon is a key player in the PV market providing solutions to the leading inverter manufacturers Infineon is present at top-10* Global PV installations p.a.1 inverter manufacturers (2018)2 Mainland China Rest of World CAGR(19-24): 7% 1 | Huawei  [GW] 2 | Sungrow  176 163 171 3 | SMA  140 42 44
Slide 46: Infineon is the leading power semiconductor supplier for wind turbines
Infineon is the leading power semiconductor supplier for the wind turbine industry Infineon is present at top-10* wind Global wind energy installations p.a.1 turbine manufacturers (2019)2 Mainland China Rest of World 1 | Vestas  [GW] CAGR(19-24): 3% 2 | Siemens Gamesa  73 77 3 | Goldwind  71 62 2
Slide 47: What comes next? Mid- to long-term structural growth opportunities
What comes next? Mid- to long-term structural growth opportunities Core Adjacent New area Courtesy: Shakti pumps Courtesy: Alstom new material solar pumps fuel cell Courtesy: Courtesy: McKinsey Siemens AG EV charging energy storage eMarine Courtesy: Lilium GmbH collaborative robots eDelivery vehicle
Slide 49: PSS's growth is built on many applications from different sectors
PSS's growth is built on many applications from different sectors in power and non-power Computing Industrial Consumer / Misc Communications › data center › power supplies › eBikes, eScooter › smartphones › enterprise server › EV on-board charger › multicopter › mobile devices › PC, notebook › PV in
Slide 51: Infineon is the clear leader in MOSFETs; growth potential in power ICs
Infineon is the clear leader in MOSFETs; growth potential in power ICs Discrete Power MOSFETs Power ICs 2018 total market: $7.58bn 2018 total market: $25.62bn Infineon 27.7% (+0.7%-pt) Texas Instr. 15.9% ON Semi 13.1% Infineon 8.3% (+0.8%-pt) STMicro 8.0% Qualcomm 7.3% Toshiba 7.0% ADI 7.1% Renesas
Slide 52: Technology leadership in MOSFETs and digital power
Technology leadership in MOSFETs and digital power: highest efficiency and power density Adjacent Core Controller Driver IC MOSFET triggers low-power translates signal into high- signal to switch on current gate input switches on, current flows Power management solutions reduce TCO More efficient se
Slide 53: Four interrelated trends drive power semiconductor BoM in battery-powered applications
Four interrelated trends drive power semiconductor BoM in battery-powered applications Interrelated trends for battery-powered applications  From corded to From brushed DC  Trend towards higher power  New applications cordless power to brushless DC and higher battery voltage with trend towards t
Slide 54: Transition from 3G/4G to 5G drives demand in power semis
Transition from 3G/4G to 5G drives demand in power semis for antennas and power supplies 5G base station New! Massive MIMO DC-DC (MOSFET, ICs) 5G mmWave antenna New! AC-DC, DC-DC (MOSFET, ICs) Cloud Computing AC-DC, DC-DC (MOSFET, ICs) New! Base station power supply AC-DC, DC-DC (MOSFET, ICs) Fog Co
Slide 55: What comes next? Mid- to long-term structural growth opportunities
What comes next? Mid- to long-term structural growth opportunities Core Adjacent New area Courtesy: Nissan 5G infrastructure on-board charger collaborative robots hyperscale AI data center power tools smart speaker new material home appliances class D audio 2020-06-05 Copyright © Infineon Technologi
Slide 57: RF and Sensing devices enable new services
RF and Sensing devices enable new services and will shape the way we live and work Various use cases are enabled by a small set of versatile core technologies Courtesy: BMW Augmented Reality Voice-controlled devices Gesture control Commercial and consumer multicopters Industrial robotics 2020-06-05
Slide 58: We focus on MEMS sensors and target leadership in 3D sensing and radar
We focus on MEMS sensors and target to become the leader in 3D sensing and radar Microphone Pressure Environmental 3D radar 3D ToF World Highest No Best-in-class Best-in-class smallest form energy distortions resolution resolution 6x6mm² factor efficiency Receive Measure clear audio Measure CO2 Biom
Slide 60: Continuous stream of new topics aging and exiting
Continuous stream of new topics aging and exiting maturity Emerging Growing Maturing Pay TV SIM Card  Smart card form factor  Embedded form factor Contact-based Payment TPM for Computing Government ID Embedded Secure Element (NFC) Transport Ticketing Authentication Contactless Payment eSIM for Aut
Slide 61: In IoT, the Cypress and Infineon portfolios complement each other
In IoT, the Cypress and Infineon portfolios complement each other for best-in-class solutions Past: standalone IoT offerings from Now: combined IoT offerings going forward Infineon and Cypress Cypress standalone offering: Best-in-class solutions - extending Infineon’s scope of applications and marke
Slide 62: DSS has an industry-leading offering built on multi-year investments
DSS has an industry-leading offering built on multi-year investments and experience › 15+ years of investment in PSoC portfolio with > 2bn MCUs shipped Microcontroller › major advantages of programmability and low power consumption › integrated security as a key feature, especially for IoT › excelle
Slide 63: Agenda
Agenda 1 Cypress becomes part of Infineon 2 ESG: targets and achievements 3 Automotive 4 Industrial Power Control 5 Power & Sensor Systems 6 Digital Security Solutions 7 Selected financial figures 2020-06-05 Copyright © Infineon Technologies AG 2020. All rights reserved. 63
Slide 64: Revenue increase in Q2 FY20 contributed from all four divisions
Revenue increase in Q2 FY20 contributed from all four divisions Revenue development [EUR m] 0% › Challenging market environment 4% › 4% q-q revenue increase 2,015 2,062 1,983 1,986 1,916 › Gross margin and segment result in Q1 benefited from a positive nonrecurring effect of approximate €36m 37.8% 3
Slide 65: Q2 FY20 division performance
Q2 FY20 division performance ATV IPC PSS DSS [EUR m] [EUR m] [EUR m] [EUR m] -3% 888 893 4% 875 829 846 639 617 591 598 593 3% 347 357 362 358 -1% 334 22.3 24.2 23.9 24.6 22.4 19.3 16.3 18.6 17.3 164 167 162 158 162 12.8 11.0 15.4 8.7 8.1 6.0 11.6 11.4 13.6 13.9 14.2 112 98 78 67 51 67 55 59 62 62 1
Slide 66: Adjusted RoCE above WACC
Adjusted RoCE above WACC RoCE and adjusted RoCE 30% 20% 10% 0% FY16 FY17 FY18 FY19 Q2 FY19 Q3 Q4 Q1 FY20 Q2 Adjusted RoCE (excluding PPA, Deferred Tax Effects, RF power sale, Cypress) RoCE 2020-06-05 Copyright © Infineon Technologies AG 2020. All rights reserved. 66
Slide 67: Earnings-per-share and total cash return
Earnings-per-share and total cash return Development of earnings-per-share (EPS) from continuing operations [EUR cent] 22 24 23 EPS basic 20 19 16 17 13 13 13 EPS adjusted Q2 FY19 Q3 Q4 Q1 FY20 Q2 Total cash return to shareholders [EUR m] 2,450 336 › Policy of sustainable 308 305 dividend payout 283
Slide 68: Opex within target range
Opex within target range Selling, General & Administration Research & Development* [EUR m] 243 243 241 236 230 222 212 214 214 204 159 156 12.7% 157 157 151 12.1% 11.9% 12.1% 11.2% 10.7% 10.8% 10.6% 10.8% 10.6% 55 57 63 53 58 Q2 FY19 Q3 Q4 Q1 FY20 Q2 Q2 FY19 Q3 Q4 Q1 FY20 Q2 General & Administration
Slide 69: Inventory coming down after reaching high in Q1
Inventory coming down after reaching high in Q1 Working capital* Inventories [EUR m] [EUR m] [days] 1,762 1,706 1,758 1,701 1,767 1,736 1,452 1,475 1,511 1,583 124 124 132 120 115 Q2 FY 19 Q3 Q4 Q1 FY20 Q2 Q2 FY19 Q3 Q4 Q1 FY20 Q2 Inventories DIO* Trade receivables Trade payables [EUR m] [days] [EUR
Slide 70: Cycle management slows down investments
Cycle management slows down investments Investments* Depreciation & Amortization [EUR m] 1,451 1,254 1.2bn – 1.3bn 1,022 ~1.0bn 945 ~60 833 861 87 785 826 812 760 140 103 129 114 18.1% 16.5% 13.5% 14.5% 14.2%  15.4% 13.1% 12.9% 12.8% 11.5% 11.3% 11.8% 11.9% 646 693 683 758 858 ~940 FY15 FY16 FY17 F
Slide 71: Decrease in net cash reflects dividend payout
Decrease in net cash reflects dividend payout Liquidity development [EUR m] 1,531 1,537 1,556 1,535 1,900 1,549 2,223 333 1,882 3,435 3,779 4,859 3,328 4,588 3,051 3051 Q2 Q3 Q4 Q1 Q2 FY19 FY20 Gross Cash Debt Net Cash › Q3 FY19: Includes the proceeds of €1.5bn resulting from the capital increase ex
Slide 72: Part of your life. Part of tomorrow.
Cinfineon Part of your life. Part of tomorrow.
Slide 73: Glossary (1 of 2)
Glossary (1 of 2) AC alternating current DPM digital power management AC-DC alternating current - direct current eCall emergency call AD automated driving ECU electronic control unit ADAS advanced driver assistance system EPS electric power steering AEB automatic emergency braking eSIM embedded subs
Slide 74: Glossary (2 of 2)
Glossary (2 of 2) iPol image processing line PV photovoltaic IRF International Rectifier PSoC programmable system-on-chip IVN in-vehicle networking RF radio frequency LCD liquid crystal display rhs right-hand scale LED light-emitting diode Si silicon LSEV low-speed electric vehicle SiC silicon carbi
Slide 75: Disclaimer
Disclaimer 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 s
Slide 76: Financial calendar
Financial calendar Date Location Event 3 – 4 Jun 2020 Berlin  virtual dbAccess Berlin Conference 9 – 10 Jun 2020 Paris  virtual Exane 22nd European CEO Conference 4 Aug 2020* Q3 FY20 Results Unterschleißheim 21 Sep 2020 Berenberg Goldman Sachs German Corporate Conference (nearby Munich) 22 Sep 202
Slide 77: Notes
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 li
Slide 78: Most recent presentations
Most recent presentations IPC Business Update ATV Call Dr. Peter Wawer, Dr. Peter Friedrichs Peter Schiefer 7 May 2020 8 October 2019 https://www.infineon.com/pcim_presentaion https://www.infineon.com/atv_call Sustainability Report 2019 IFX Day 2018 23 November 2019 Capital Markets Day London, 12 Ju
Slide 79: Institutional Investor Relations contacts
Institutional Investor Relations contacts Alexander Foltin Corporate Vice President Finance, Treasury & Investor Relations +49 89 234-23766 alexander.foltin@infineon.com Joachim Binder Isabell Diel Senior Director Investor Relations Manager Investor Relations +49 89 234-25649 +49 89 234-38297 joachi

Infineon Technologies — Q2 FY2020 Earnings Presentation on 6ix

Infineon Technologies — Q2 FY2020 Earnings Presentation

Slide 1: Second Quarter FY 2020 Quarterly Update

Slide 2: Agenda

Slide 3: Infineon and Cypress create a global top-10 player, new #3 in MCU market

Slide 4: Infineon remains top player in security ICs, NOR Flash, and MEMS microphones

Slide 5: Two complementary companies form a financially stronger and more balanced player

Slide 6: Infineon offers a unique portfolio that links the real and the digital world

Slide 7: Infineon now offers the entire system for IoT

Slide 8: Infineon has industry's broadest product portfolio covering entire range of auto applications

Slide 9: NOR Flash benefits from growing use of flash-less processing units

Slide 10: With the combined portfolio Infineon can offer full system solutions

Slide 11: Infineon's and Cypress' competencies perfectly fit together for smart wearables

Slide 12: Cypress financial performance

Slide 13: Allocation of Cypress revenue leads to a more balanced portfolio

Slide 14: Short-term reaping of cost synergies, long-term value creation of revenue synergies

Slide 15: Further improvement of through-cycle target operating model

Slide 16: Well-defined roadmap how to capture the value of the deal

Slide 17: After completing the equity part of the refinancing, focus shifts to debt

Slide 18: Infineon with moderate financial leverage post Cypress closing

Slide 19: Outlook for Q3 FY20 and FY20 including Cypress

Slide 20: Tight customer relationships, based on system know-how and application understanding

Slide 21: Agenda

Slide 22: Our products and innovations are key elements to deal with climate change

Slide 23: Infineon will become carbon-neutral by 2030

Slide 24: External recognitions confirm our engagement in contributing to a sustainable society

Slide 25: Appendix

Slide 26: Automotive

Slide 27: Infineon and Cypress create the new number 1 in automotive semiconductors

Slide 28: Electro-mobility

Slide 29: xEV growth driven by EU emission regulation

Slide 30: Incremental demand of power semiconductors is a significant opportunity

Slide 31: Automated Driving

Slide 32: Vision Zero – AD requires failure-tolerant availability of the system

Slide 33: Increased sensor requirements drive the content in the next five years

Slide 34: ADAS/AD semi growth driven by radar and camera sensor modules

Slide 35: Infineon's Power Strategy

Slide 36: Infineon's portfolio covers the entire range of power and frequency

Slide 37: Infineon's discrete power portfolio is separated by voltage classes

Slide 38: Three strategic levers to outgrow the power semi market

Slide 39: Second generation CoolSiC Trench MOSFET will increase the addressable market

Slide 40: Siltectra: Status of implementation of Cold Split technology

Slide 41: Infineon is ready to support and shape the growing SiC device market

Slide 42: Industrial Power Control

Slide 43: Clear leader in discrete IGBTs and IGBT modules; IPMs strengthened again

Slide 44: Extensive power module portfolio addresses the whole range of drives applications

Slide 45: Infineon is a key player in the PV market

Slide 46: Infineon is the leading power semiconductor supplier for wind turbines

Slide 47: What comes next? Mid- to long-term structural growth opportunities

Slide 48: Power & Sensor Systems

Slide 49: PSS's growth is built on many applications from different sectors

Slide 50: PSS – Power

Slide 51: Infineon is the clear leader in MOSFETs; growth potential in power ICs

Slide 52: Technology leadership in MOSFETs and digital power

Slide 53: Four interrelated trends drive power semiconductor BoM in battery-powered applications

Slide 54: Transition from 3G/4G to 5G drives demand in power semis

Slide 55: What comes next? Mid- to long-term structural growth opportunities

Slide 56: PSS – RF and Sensing

Slide 57: RF and Sensing devices enable new services

Slide 58: We focus on MEMS sensors and target leadership in 3D sensing and radar

Slide 59: Digital Security Solutions

Slide 60: Continuous stream of new topics aging and exiting

Slide 61: In IoT, the Cypress and Infineon portfolios complement each other

Slide 62: DSS has an industry-leading offering built on multi-year investments

Slide 63: Agenda

Slide 64: Revenue increase in Q2 FY20 contributed from all four divisions

Slide 65: Q2 FY20 division performance

Slide 66: Adjusted RoCE above WACC

Slide 67: Earnings-per-share and total cash return

Slide 68: Opex within target range

Slide 69: Inventory coming down after reaching high in Q1

Slide 70: Cycle management slows down investments

Slide 71: Decrease in net cash reflects dividend payout

Slide 72: Part of your life. Part of tomorrow.

Slide 73: Glossary (1 of 2)

Slide 74: Glossary (2 of 2)

Slide 75: Disclaimer

Slide 76: Financial calendar

Slide 77: Notes

Slide 78: Most recent presentations

Slide 79: Institutional Investor Relations contacts