Infineon Technologies Ag · XETR:IFX

Infineon Technologies — Q2 FY2022 Earnings Presentation

101 slides from Infineon Technologies's earnings presentation, May 9, 2022

  1. Slide 1: Second Quarter FY 2022 Quarterly Update

    Second Quarter FY 2022 Quarterly Update Infineon Technologies AG Investor Relations 1

  2. Slide 2: Infineon at a glance

    Infineon at a glance Addressing long-term high-growth trends FY21 revenue by segment Decarbonization 13% Automotive (ATV) › CO2 saving › Energy efficiency Digitalization Industrial Power Control (IPC) 44% › Sustainability 29% › Productivity Power & Sensor Systems (PSS) › Comfort Connected Secure Sys

  3. Slide 3: Since 1999, Infineon has grown by more than 10% p.a.

    Since 1999, Infineon has grown by more than 10% p.a., thereby consistently outperforming the semiconductor market Revenues CAGR (FY99 – FY21): 10.6% Semiconductor World Market CAGR (FY99 – FY21): 5.8% Profitability1 FY09 – FY11: FY12 – FY14: FY15 – FY17: F18 – FY21: (average Segment Result Margin) 9

  4. Slide 4: Global player, #1 in power semiconductors, #4 in microcontrollers

    Infineon is a global player, #1 in power semiconductors, and ranked #4 in the overall microcontroller market Semiconductor suppliers Power discretes and modules MCU suppliers 2021 total market: $587bn1 2020 total market: $20.9bn2 2021 total market: $21.9bn1 Intel 13.0% Infineon 19.7% NXP 17.3% Samsu

  5. Slide 5: Well-balanced portfolio among key trends Decarbonization and Digitalization

    Well-balanced portfolio among key trends Decarbonization and Digitalization FY21 revenue of €11,060m by target application industrial and consumer IoT; 7% powertrain ICE; 8% payment, identification, ticketing; 6% xEV (incl. MHEV); 7% other PSS; 2% CSS safety excl. ADAS; 6% industrial; 7% 13% ATV ADA

  6. Slide 6: Broad presence in Automotive with new SiC design wins

    We continue the broad presence of Infineon power semiconductors in Automotive applications with new SiC design wins Examples of OEMs powered by Infineon Latest CoolSiC™ design wins including new applications › Leverage huge IGBT customer base with broadest Volkswagen German Luxury OEM Hyundai XPeng

  7. Slide 7: Complete power management solutions for compute servers

    Infineon offers complete power management solutions for compute servers based on Intel’s Xeon processors Infineon’s power management solution maximizes overall system performance Advantages of Infineon’s System Solution • XDP™ digital power controller: Flexibility with software-defined architecture

  8. Slide 8: World's first TPM with quantum-resistant firmware upgrade path

    The world's first TPM with a quantum-resistant firmware upgrade path The market for long-term secure applications is opening In 10-20 years, quantum computers are likely to attack today today's cryptography › Quantum-resistant designs offers vast market potential - new devices 5-8 years with longer

  9. Slide 9: Resilient through-cycle Target Operating Model

    Infineon’s value creation is crystallized in a resilient through-cycle Target Operating Model Target Operating Model1 Revenue growth 9%+ Segment Result Margin 19% Investment-to-sales 13% 1 Infineon financial performance to approach targets as Cypress integration progresses 2022-05-09 Copyright © Inf

  10. Slide 10: Growing annual revenues by €5bn+ in FY25

    Growing annual revenues by €5bn+ in FY25 – multitude of growth drivers across markets/applications; well-diversified divisional split FY21 by division FY25e by division (indicative) CSS CSS 13% 13% ATV 44% ATV 44% by segment €11.1bn €16bn+ PSS ATV IPC PSS CSS cum. rev. increase 29% PSS 30% IPC 14% I

  11. Slide 11: Key levers to reach 19% Segment Result Margin

    Key levers identified to get to the target profitability flight level – 19% Segment Result Margin over the (next) cycle Looking back: former TOM achieved Looking ahead: all set up to reach current TOM 19% 17% over the (next) cycle; illustrative FY17 to FY21 COVID Levers for margin expansion Inhibito

  12. Slide 12: Strategic differentiation through in-house manufacturing

    Strategic differentiation through in-house manufacturing In-house manufacturing › We manufacture power and sensor technologies in-house where we can gain a strategic advantage from our leading-edge manufacturing technologies and our outstanding process expertise › This results in a differentiation p

  13. Slide 13: Focused investments in areas with highest differentiation

    We focus our investments to those areas with highest differentiation Split of investment-to-sales by category Major focus topics Investment- to-sales › Capacity expansion for SiC and TOM GaN (9%+ | 19% | 13%) › Further capacity expansion for 300 mm in Villach and Dresden ~13% › Further capacity expa

  14. Slide 14: Outlook for Q3 FY22 and FY22

    Outlook for Q3 FY22 and FY22 Outlook Q3 FY221 Outlook FY221 Revenue ~ €3.4bn €13.5bn +/- €500m At the mid-point of the revenue guidance: Segment Result Margin ~ 21% > 22% Investments in FY22 ~ €2.4bn D&A in FY22 €1.6bn - €1.7bn2 Free Cash Flow in FY22 ~ €1.1bn 1 Based on an assumed average exchange

  15. Slide 15: ESG: targets and achievements

    ESG: targets and achievements 15

  16. Slide 16: Net CO2 reduction of more than 70 million tons

    We contribute a net CO2 reduction of more than 70 million tons CO2 burden1 2.2 million tons CO2 savings2 of CO2 equivalents Ratio ~1:33 72.5 million tons of CO2 equivalents Net ecological benefit: CO2 emissions reduction of more than 70 million tons Infineon is excellent in resource efficiency We ar

  17. Slide 17: Resource efficiency and commitment to CO2 neutrality

    Infineon is excellent in resource efficiency and committed to CO2 neutrality – sustainability is in our DNA Infineon ranks among the 10 percent most sustainable companies in the world1 In CY20, we used resources in our manufacturing processes much more efficiently than the global average of the semi

  18. Slide 18: High-growth applications offer further CO2 savings potential

    High-growth applications offer further additional CO2 savings potential In CY20: Wind energy: Annual installation PV energy: Annual installation capacity increased over 80%1 capacity increase of ~15%2 Net ecological benefit increases over time Drives: Increasing penetration of EVs: Increased sales c

  19. Slide 19: External recognitions of sustainability engagement

    External recognitions confirm our engagement in contributing to a sustainable society Rating/Score Scale Date CCC to MSCI ESG AA 02/2021 AAA B climate scoring CDP F to A 12/2021 B water scoring Ecovadis 99th percentile “Platinum” award 0 to 100 02/2022 83 Dow Jones Sustain- Dow Jones Sustainability

  20. Slide 20: Infineon's Wide Bandgap Strategy

    Infineon's Wide Bandgap Strategy 20

  21. Slide 21: Leveraging full potential of Si, SiC and GaN

    Leveraging full potential based on the power ratings and switching frequency required by the application Comparison of technologies Si › Si remains the mainstream technology › Targeting 25 V - 6.5 kV › Suitable from low to high power SiC › SiC complements Si in many applications and enables new solu

  22. Slide 22: SiC – serving all relevant applications

    SiC – Infineon is serving all relevant applications Focus applications Customers Industrial power Photovoltaic Transportation Automotive supply Infineon serves > 3,000 customers directly or via distribution EV charging Drives 2022-05-09 Copyright © Infineon Technologies AG 2022. All rights reserved.

  23. Slide 23: SiC – US$ billion revenue in sight

    SiC – US$ 1 billion revenue in sight SiC power devices1 SiC revenue development 2021 total market: $1,137m ST Micro 40% Infineon 22% ~$1bn revenue Wolfspeed Rohm 14% 10% Automotive onsemi 7% Mitsubishi 2% ~80% Industrial › Strengthening #2 position in SiC device market ~100% › Highest yoy growth of

  24. Slide 24: CoolSiC trench design optimized performance and reliability

    CoolSiC™ trench design optimized performance and reliability Infineon’s trench technology moves the boundaries High Infineon trench Gen 1 Gen 2 Reliability planar Low Performance High Instead of exploiting full potential of performance, Infineon turns part of this budget into much higher reliability

  25. Slide 25: Cold Split technology reduces raw material losses

    Our Cold Split technology leads to significant reduction of raw material losses during SiC manufacturing # of wafers Cold Split technology Crystal Technology (indexed) SiC boule 1x Boule Sawing Today Grinding Upper half Boule- splitting Traditional wire sawing wastes ~75% of raw material! Epitaxy Wa

  26. Slide 26: CoolSiC portfolio expansion by packages and voltages

    Strong CoolSiC™ portfolio expansion: by packages and by voltages Broadest and best-in-class SiC portfolio Industrial Automotive grade CoolSiC™ CoolSiC™ CoolSiC™ CoolSiC™ CoolSiC™ CoolSiC™ Hybrid Diode MOSFET Diode Hybrid MOSFET Discrete Discrete Module Discrete IPM Module Discrete Discrete Discrete

  27. Slide 27: > €2bn investment for 3rd module in Kulim

    Expansion of SiC and GaN capacity follows our long-term strategy > €2bn investment to build a 3rd module at our site in Kulim Rationale › Seize structural growth opportunities linked to electrification › Prepare manufacturing cluster for acceleration of WBG › Create higher resilience of WBG supply b

  28. Slide 28: GaN technology – well positioned to address key markets

    GaN technology – Infineon well positioned to address key markets GaN market forecast1 Key values of GaN vs Si Applications [USD m] Higher power density in adapters and chargers CAGR(20 – 25): 84% Focus applications 1,125 10x > 2% 20% 25% 3x switching more power lower higher power less frequency effi

  29. Slide 29: GaN portfolio seeing increasing demand

    Infineon’s GaN portfolio is seeing increasing demand from a broad range of applications GaN for power applications GaN for RF applications › GaN discretes, GaN drivers, integrated power stages (including › GaN power amplifier with frequencies of 2.5 to 2.7 GHz and 8 W the right-fit driver) for 650 V

  30. Slide 30: Automotive

    Automotive Infineon

  31. Slide 31: ATV at a glance

    ATV at a glance ATV revenue and Segment Result Margin FY21 revenue split by product group [EUR m] CAGR(FY16-FY21): 12.8% memory ICs MCUs 5.000 4,841 25% 4.500 4.000 2,989 3,284 3,503 3,521 3.500 2,656 15% 3.000 2.500 16% 14% 16% 2.000 14% 12% 5% 1.500 1.000 4% 500 sensors 0 -5% FY16 FY17 FY18 FY19 F

  32. Slide 32: Market outlook for ATV target applications

    Market outlook for ATV division’s target applications Applications Market Outlook for CY22 › Market demand-supply uncertainties continue due to COVID-19 pandemic, silicon foundry limitations and macroeconomic concerns. Ukraine war causing further disruptions, especially in Europe › Gradual easing of

  33. Slide 33: Top market position built on system competence

    Infineon’s top market position is built on system competence based on an industry-leading product portfolio Automotive semiconductors (2021 total market: $46.7bn; +31.5% yoy) Infineon 12.7% › total market grew by 31.5% yoy, reaching all-time-high of $46.7bn, exceeding previous high in 2018 of $38.2b

  34. Slide 34: Electromobility

    Electromobility 34

  35. Slide 35: xEV penetration reaching all-time high

    xEV (PHEV + BEV) penetration reaching all-time high of more than 10% globally in Q1 CY22 +108% +104% +67% +155% [units k] 6,750 [penetration %] 14.3% 14.0% 3,240 10.8% 8.4% 5.6% 3,410 19.5% 4.4% 6.1% 15.6% 2,060 2,340 2.2% 670 1,410 1,340 1,160 8.5% 580 330 200 4.2% CY20 CY21 Q1 CY20 CY21 Q1 CY20 CY

  36. Slide 36: Governments and OEMs indicated when to ban the ICE

    The road to emission-free cruising: Governments and OEMs indicated when to ban the ICE / Government regulations 2050: Spain, cities with > 50k inhabitants: no ICE on the street. 2035: › EU: all new cars zero-emission. 2040: Spain, cities with > 50k › China: public transport vehicles to be fully elec

  37. Slide 37: PHEV + BEV penetration and incremental power semi content

    The penetration of PHEV + BEV is accelerating; the incremental content of power semis in xEV is a significant opportunity for Infineon PHEV + BEV annual car production1 2021 average xEV semi content2 Incremental power semi by application [m units] ~$950 ~$890 OBC, DC-DC, BMS, auxiliaries, analog Sep

  38. Slide 38: Automated Driving

    Automated Driving Cinfineon

  39. Slide 39: Car of the future driving digitalization

    The car of the future is driving digitalization in many aspects and Infineon provides the ingredients ADAS/AD software-over-the-air infotainment and HMI › object recognition › remote OS updates › seamless digital entertainment › advanced spatial sensing › secure feature upgrades › always-on, secure

  40. Slide 40: AURIX gold standard of Automotive MCUs

    AURIX™ – the “gold standard” of Automotive MCUs continues its success story with the recently announced TC4x Current AURIX™ TC2x/TC3x microcontroller family New AURIX™ TC4x microcontroller family › AURIX™ is one of the leading Automotive microcontrollers with more › New AURIX™ TC4x family for next g

  41. Slide 41: AURIX first-choice automotive architecture

    The Infineon AURIX™ MCU family has become the first-choice auto- motive architecture for high-growth and safety-critical applications Infineon AURIX™ revenue development over time Powertrain Classical safety ADAS/AD Domain and zone control › ICE engine management › power steering › camera host contr

  42. Slide 42: Industrial Power Control

    Industrial Power Control Cinfineon

  43. Slide 43: IPC at a glance

    IPC at a glance IPC revenue and Segment Result Margin FY21 revenue split by product group (indicative) [EUR m] CAGR(FY16-FY21): 7.5% SiC discrete IGBTs 1.800 1,542 25% 1.600 1,323 1,418 1,406 1.400 1,206 1.200 1,072 19% 18% 18% 15% IGBT modules 18% 1.000 15% driver ICs 800 12% 600 5% 400 200 0 -5% I

  44. Slide 44: Market outlook remains positive across IPC applications

    Market outlook remains positive across most target applications; growth rates returning to normal long term patterns Applications Market Outlook for CY22 (% of FY21 segment revenue) Automation and Drives ~35% › Growth rates remain above long-term averages after strong recovery in CY21; currently no

  45. Slide 45: Clear leader in discrete IGBTs and IGBT modules

    Clear leader in discrete IGBTs and IGBT modules; fostering position in IPMs Discrete IGBTs IPMs IGBT modules1 2020 total market: $1.59bn 2020 total market: $1.43bn 2020 total market: $3.63bn Infineon 29.3% Mitsubishi 32.9% Infineon 36.5% Fuji Electric 15.6% onsemi 17.1% Fuji Electric 11.4% Mitsubish

  46. Slide 46: Solutions for all links in the energy conversion chain

    Infineon provides solutions for all links in the energy conversion chain 2022-05-09 Copyright © Infineon Technologies AG 2022. All rights reserved. 46

  47. Slide 47: Green energy generation provides large business opportunities

    Green energy generation provides large business opportunities Power semiconductor content by application Upside potential: example solar power 6000 [EUR per MW] 5,000 5000 4000 3,500 3,500 4,200 GW Net Zero Emissions scenario1 3000 2000 2,500 2,000 2,000 1000 0 0 2,400 GW Fossil, nuclear, Wind Solar

  48. Slide 48: Increasing share of renewables requires stronger grid

    Increasing share of renewables requires stronger grid Planned grid expansion in Infineon‘s 4.5 kV IGBT modules enable Germany HVDC lines Converter station › HVDC – High Voltage Direct Current lines are the technology of choice to strengthen the grid › Converter stations are equipped with power semic

  49. Slide 49: Infineon will benefit from all CO2 saving measures

    Infineon will benefit from all CO2 saving measures CO2 (Gt / year) Total savings to be achieved: 35.000 23,000 Gt via Others 30.000 Buildings Fuel switch Hydrogen production Transport ~20% New markets 6,200 Gt 25.000 Transport 8,600 Gt Industry Energy efficiency Wide bandgap 4,900 Gt 20.000 ~30% Hig

  50. Slide 50: Charging infrastructure as a P2S example

    State-of-the art charging infrastructure powered by Infineon gives a perfect P2S example System solution enables… Controller 1 AURIX™ microcontroller › Fastest charging cycles EiceDRIVER™ gate driver ICs 2 EiceDRIVER™ enhanced › More compact designs with up to +30% power density 3 CoolSiC™ switches

  51. Slide 51: Field test of XHP 2 module with SiC MOSFET concluded

    Field test of XHP™ 2 module with SiC MOSFET successfully concluded Product Application Outcome › One year in operation transporting XHP™ 2 passengers SiC MOSFET › 65,000 kilometers › 10% energy savings › Reduction of motor noise Avenio Streetcar Voice of Customer “The project […] shows that we can n

  52. Slide 52: Power & Sensor Systems

    infineon Power & Sensor Systems

  53. Slide 53: PSS at a glance

    PSS at a glance PSS revenue and Segment Result Margin FY21 revenue split by product group [EUR m] other (incl. HiRel) CAGR(FY16-FY21): 9.9% 3.500 3,268 40% 3.000 2,445 2,560 MOSFETs 2,318 30% RF & sensors 2.500 2,041 2,148 (incl. SiC, GaN) 2.000 24% 24% 25% 20% 1.500 23% 20% 1.000 17% 10% 500 0 0% F

  54. Slide 54: Market outlook for PSS target applications

    Market outlook remains positive across most target applications but impact of current macro environment to be further closely monitored Applications Market Outlook for CY22 (% of FY21 segment revenue)1 Computing › Structural growth driven by cloud computing and to a lesser extent by enterprise serve

  55. Slide 55: PSS growth built on many applications

    PSS's growth is built on many applications from different sectors in power and non-power Computing Communications Smartphones Consumer Industrial › data center › base stations › smartphones › eBikes, eScooter › power supplies › enterprise server › backhaul cellular › mobile devices › multicopter › E

  56. Slide 56: PSS – Power

    PSS — Power Cinfineon

  57. Slide 57: Clear leader in MOSFETs; growth potential in power ICs

    Infineon is the clear leader in MOSFETs; growth potential in power ICs Discrete Power MOSFETs1 Power ICs2 2020 total market: $8.1bn 2020 total market: $24.3bn Infineon 24.4% Texas Instruments 15.8% onsemi 12.4% Infineon 8.2% STMicro 8.8% Analog Devices 7.2% Toshiba 7.7% Qualcomm 6.4% Renesas 5.1% ST

  58. Slide 58: Data center – AI hyperscaler and edge computing driving growth

    Data center – AI hyperscaler and telecom/edge computing are driving the growth Server growth Power requirement per server [units m] Power1: CAGR(20-25): 8% 20 Exponential increase in AI ~3x Training & Networking (ASIC/SoC/FPGA/CPU/ 15 GPU) power level requires cutting-edge innovation in ~1.5x Device

  59. Slide 59: 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 › driver #1: massive growth of data and computing power Massive MIMO DC-DC (MOSFET, ICs) › driver #2: higher number of base stations due to dense network › driver #3: ~4x higher power semi Base s

  60. Slide 60: PSS – RF and Sensing

    S N PSS — RF and Sensing Infineon

  61. Slide 61: Main applications addressed by PSS sensors portfolio

    Main applications addressed by PSS sensors portfolio MEMS microphone 3D radar (24/60 GHz) 3D ToF image sensor Environmental High Ultra-low Best audio Best price / precision and power performance performance Small form consumption factor Presence Face ID Low power detection/ (biometrics), Measure CO2

  62. Slide 62: Sensor markets offer attractive growth potential

    Sensor markets targeted by PSS offer attractive growth potential MEMS microphone market Radar IC market (24 GHz and 60 GHz only) [EUR m] 1543 [EUR m] 1433 1480 600 1310 1074 1150 470 340 237 132 143 FY 2021 2022 2023 2024 2025 2026 FY 2021 2022 2023 2024 2025 2026 Source: Infineon estimates Source:

  63. Slide 63: XENSIV MEMS microphones made Infineon #1

    Unparalleled audio characteristics of our XENSIV™ MEMS micro- phones made Infineon #1 in 2019 with further m/s gain in 2020 Infineon’s market share development in MEMS microphones (by units) 44.2% 2020 MEMS die market share 35.7% total market: 6.0bn units 34.7% 33.5% 26.5% Infineon 44.2% Knowles 38.

  64. Slide 64: Radar use cases for presence detection and health monitoring

    Radar offers several use cases for presence detection and health monitoring Presence detection Health monitoring › Room Occupancy Devices › Sleep monitoring e.g. human localization and counting Sleep detection, sleep quality, apnea & snoring detection (radar combined with MEMS microphone) › Occupanc

  65. Slide 65: 3D ToF versatile for consumer applications

    Infineon 3D ToF is a versatile technology for many consumer applications 3D Gestures Mobile Phones Payment Face ID Hand ID – User Facing 3D Scanning Virtual Retail AR Gaming Mobile Phones Bokeh – World Facing Consumer Navigation avoidance Last Mile Collision Robot Robotics AR Gaming Augmented- & Map

  66. Slide 66: XENSIV PAS CO2 sensor for precise CO2 measuring

    Infineon XENSIV™ PAS CO2 sensor enables highly-precise CO2 measuring in an extremely small size Photoacoustic spectroscopy (PAS) technology based on Infineon‘s high (SNR) signal-to-noise ratio MEMS microphone › Infineon XENSIV™ PAS CO2 sensor enables highly-precise, cost-effective and space saving C

  67. Slide 67: System solution addressing IoT market

    Infineon system solution addresses IoT market via combining XENSIV™ sensors, PSoC™ 6 MCU and connectivity Example offering: Combination of sensors, microcontrollers and Key facts connectivity in development kit › Infineon offers system solutions comprising of sensor, MCU, connectivity and software l

  68. Slide 68: Connected Secure Systems

    Cinfineon Connected Secure Systems

  69. Slide 69: CSS at a glance

    CSS at a glance CSS revenue and Segment Result Margin FY21 revenue split by product group [EUR m] CAGR(FY16-FY21): 14.7% MCUs 1,397 30% 1.400 1.200 974 1.000 703 708 664 20% security ICs 800 19% 642 18% 600 16% 10% 400 12% 13% 13% 200 0 0% FY16 FY17 FY18 FY19 FY20 FY21 connectivity CSS revenue CSS S

  70. Slide 70: Positive outlook for most markets for CY22

    Positive outlook for most markets for CY22, while allocation has varying effects on the segments with the strongest impacts on payment Applications Market Outlook for CY22 (not considering supply constraints) (% of FY21 segment revenue) Industrial IoT › Growth momentum in industrial segments to cont

  71. Slide 71: Infineon remains top player in security ICs

    Infineon remains top player in security ICs Security ICs (excl. NFC controllers; excl. NFC eSE) Security ICs (excl. NFC controllers; excl. NFC eSE) 2020 total market: $2.8bn 2020 by application others (incl. ticketing, transportation, access Infineon 24.6% control, others); 13% payment; 37% embedded

  72. Slide 72: MCU and software key for success in IoT

    MCU and software are key for the success in IoT as they define the functionality and time-to-market of the device Customer expectations Infineon’s MCU offering Hardware › Broad solution-oriented MCU family offering Broad portfolio › Platform strategy for MCU development: Application fit › shared cor

  73. Slide 73: Key enabling technologies for home automation

    With a broad set of key enabling technologies, Infineon is well positioned to capture growth opportunities Market: Home Automation Customer ex. for wireless smart Devices1 Leading competencies to provide full system solutions cameras and smart door locks [units m] Application understanding CAGR: +20

  74. Slide 74: One-stop-shop for smartwatches, trackers and hearables

    Infineon acts as one-stop-shop with excellent RF, sensor, connectivity, power, memory and security solutions Market: Smartwatches, Trackers & Customer examples for smart Hearables1 Acting as one-stop-shop with comprehensive solutions watches and fitness trackers [units m] CAGR: +9% Application under

  75. Slide 75: Driving the smart home opportunity with customers

    We are driving the smart home opportunity together with market- shaping customers Combining our portfolio to create new use cases Customer examples for Market: Smart home1,2,3 with our customers smart home [units m] Application understanding CAGR: +16% Ease-of-use 1,946 Software Frame TV Sense Compu

  76. Slide 76: Synergy potential of combined product portfolio

    Significant synergy potential of a combined company product portfolio Synergies application examples CSS offering Other Infineon Divisions offering Smart speaker Smart lighting Service robots Connectivity Connectivity Connectivity Wi-Fi / Bluetooth Combo Wi-Fi / Bluetooth Combo Wi-Fi / Bluetooth Com

  77. Slide 77: Edge AI is a fast developing market

    Edge AI is a fast developing market enabled by and calling for many of our core competencies Edge AI to offer additional growth opportunities as inference workloads move to device level Cloud AI Edge AI › Public and private clouds offer scalability › Smart subsystems offer low latency, improved priv

  78. Slide 78: Edge AI enables predictive maintenance in Industrial IoT

    For the Industrial IoT, Edge AI enables predictive maintenance and other use cases – playing right into our core competences Predictive maintenance is a significant Edge AI enhances Industrial IoT to enable predictive maintenance, lever for productivity increasing production efficiency and robustnes

  79. Slide 79: AIROC portfolio expansion to support Matter

    AIROC™ portfolio expansion to support Matter with multiprotocol solutions including BLE and IEEE 802.15.4 low-power SoC Infineon joins Connectivity Standards Alliance – shaping the future of IoT AIROC™ CYW30739 › Launching the new AIROC™ Bluetooth® Low Energy (BLE) and IEEE 802.15.4 to support Matte

  80. Slide 80: Selected financial figures

    Selected financial figures 80

  81. Slide 81: Strong presence in all regions; balanced customer portfolio

    Strong presence in all regions; well-balanced customer portfolio; no customer represents more than 10% of total sales FY21 revenue by region Revenue by sales channel Distribution partners* Top-10 direct customers* Americas EMEA (excl. Germany) 11% 13% Japan 10% Germany 12% Top-10 direct Distribution

  82. Slide 82: Group financial performance

    Group financial performance Revenues and segment result USD exchange rate [EUR m] Revenues Segment result Margin +22% Average exchange rate +4% Q2 Q1 Q2 3,298 3,159 FY21 FY22 FY22 3,007 ø USD/EUR 1.21 1.14 1.12 2,700 2,722 Order backlog1 [EUR bn] 37 29 31 22.7% 23.1% 23 20.5% 18 17.4% 18.2% 616 717

  83. Slide 83: Automotive (ATV)

    Automotive (ATV) Revenues Segment Result Margin [EUR m] [EUR m] +22% +7% 1,491 324 1,390 1,219 1,205 1,267 261 199 211 197 21.7% 16.7% 18.8% 16.2% 16.5% Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 › Positive development supported by additional capacity availabilit

  84. Slide 84: Industrial Power Control (IPC)

    Industrial Power Control (IPC) Revenues Segment Result Margin [EUR m] [EUR m] +19% +13% 412 430 407 382 361 93 82 72 73 59 19.9% 21.6% 16.3% 17.7% 19.1% Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 › Automation and drives, home appliances and power infrastructure s

  85. Slide 85: Power & Sensor Systems (PSS)

    Power & Sensor Systems (PSS) Revenues Segment Result Margin [EUR m] [EUR m] +18% -3% 945 955 925 285 276 787 757 237 184 167 29.2% 29.8% 25.6% 23.4% 22.1% Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 › Strong demand across key applications – but: delivery capabilit

  86. Slide 86: Connected Secure Systems (CSS)

    Connected Secure Systems (CSS) Revenues Segment Result Margin [EUR m] [EUR m] +36% +5% 448 108 427 100 386 329 346 60 47 30 24.1% 23.4% 13.6% 15.5% 9.1% Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 › Revenue and segment result improved – in particular microcontroll

  87. Slide 87: Gross margin and Opex

    Gross margin and Opex Gross profit R&D SG&A [EUR m] Gross margin as reported [EUR m] R&D expenses as % of revenue [EUR m] SG&A expenses as % of revenue Gross profit as reported R&D expenses SG&A expenses 1,416 1,312 1,238 1,065 447 972 376 399 399 373 369 341 328 342 330 42.9% 41.2% 41.5% 39.1% 36.0

  88. Slide 88: Investments, Depreciation & Amortization and Free Cash Flow

    Investments, Depreciation & Amortization and Free Cash Flow Investments Depreciation & Amortization Free Cash Flow [EUR m] [EUR m] [EUR m] 596 494 408 477 332 397 393 405 407 368 380 378 378 285 120 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 FY21 FY21 FY21 FY22 FY22 FY21 FY21 FY21 FY22 FY22 FY21 F

  89. Slide 89: Working Capital, in particular trade working capital components

    Working Capital, in particular trade working capital components Working capital1 Inventories [EUR m] [EUR m] [days] 1,091 2,540 945 2,181 2,319 855 1,937 2,053 711 788 101 112 111 113 121 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Trade receivables Trade payables

  90. Slide 90: Return on capital employed

    Return on capital employed Historical development 25% 20% 15% 10% 5% 0% FY18 FY19 FY20 FY21 Q2 FY21 Q3 Q4 Q1 FY22 Q2 2022-05-09 Copyright © Infineon Technologies AG 2022. All rights reserved. 90

  91. Slide 91: 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] 44 36 41 41 35 35 EPS basic 24 27 15 18 EPS adjusted Q2 FY21 Q3 Q4 Q1 FY22 Q2 Total cash return to shareholders [EUR m] 336 351 305 283 286 › Dividend for FY21: €0.27 per share 248

  92. Slide 92: Liquidity development

    Liquidity development Historical liquidity development [EUR m] 4,284 3,922 3,863 3,444 3,205 -6,657 -2,373 Q2 Q3 Q4 Q1 Q2 -2,663 -6,585 -5,881 -2,676 -6,808 FY21 FY21 -2,945 FY21 FY22 FY22 -6,859 -3,415 Gross Cash Gross Debt Net Cash/Debt 2022-05-09 Copyright © Infineon Technologies AG 2022. All rig

  93. Slide 93: Maturity profile

    Maturity profile Maturity profile from 2022 to 2033 [EUR m; US$ m; nominal values] Term loans (Jun 2024) US PP 2016 Notes (Apr 2024, Apr 2026, Apr 2028) Corporate bonds under the EMTN program Hybrid bonds1 (Jan 2025, Jan 2028) (Jun 2023, Feb 2025,Jun 2026, Jun 2029, Jun 2032) US PP 2021 Notes (Jun 2

  94. Slide 94: Conservative financial policy and investment-grade rating

    Conservative financial policy and strict commitment to investment- grade rating are the basis for through-cycle flexibility Financial Policy Targets Status Quo (LTM 31 March 2022) Gross Cash1 €1bn + at least 10% of revenues → €2.2bn €1bn + 18% of revenues → €3.2bn Gross Debt2 ≤ 2.0x EBITDA 1.6x EBIT

  95. Slide 95: Part of your life. Part of tomorrow.

    Cinfineon Part of your life. Part of tomorrow.

  96. Slide 96: Disclaimer

    Disclaimer Disclaimer This presentation contains forward-looking statements and/or assessments about the business, financial condition performance and strategy of the Infineon Group. These statements and/or assessments are based on assumptions and management expectation resting upon currently availa

  97. Slide 97: Glossary

    Glossary AC alternating current Mbps megabit per second AD automated driving MCU microcontroller unit ADAS advanced driver assistance system MEMS micro electro-mechanical systems AI artificial intelligence MHEV mild hybrid electric vehicle AR augmented reality MIMO multiple input, multiple output AS

  98. Slide 98: Notes and ESG footnotes

    Notes and ESG footnotes Investments = 'Purchase of property, plant and equipment' + 'Purchase of intangible assets and other assets' incl. capitalization of R&D expenses Capital Employed = 'Total assets' – 'Cash and cash equivalents' – 'Financial investments' – 'Assets classified as held for sale –

  99. Slide 99: For further reading

    For further reading CMD 2021 IPC Business Update Call ATV Business Update Call 5 October 2021 Dr. Peter Wawer Peter Schiefer 6 May 2021 5 October 2020 https://www.infineon.com/2021cmd https://www.infineon.com/2021ipccall https://www.infineon.com/2020atvcall CSS Business Update Call PSS Business Upda

  100. Slide 100: Financial calendar

    Financial calendar Date Event Location 11 May 2022 IPC Call along with PCIM trade show 16 May 2022 Equita 17th European Conference virtual 17 May 2022 J.P. Morgan European Technology, Media and Telecoms Conference London 23 May 2022 J.P. Morgan Global Technology, Media and Communications Conference

  101. Slide 101: Institutional Investor Relations contacts

    Institutional Investor Relations contacts Alexander Foltin Visitor address Executive Vice President Finance, Treasury & Investor Relations Am Campeon 1 – 15 +49 89 234-23766 885579 Neubiberg alexander.foltin@infineon.com Germany Isabell Diel Alexander Groschke Manager Investor Relations Director Inv

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