Infineon Technologies Ag · XETR:IFX

Infineon Technologies — Q4 2021 Earnings Presentation

95 slides from Infineon Technologies's earnings presentation, Nov 10, 2021

  1. Slide 1: Fourth Quarter FY 2021 Quarterly Update

    Fourth Quarter FY 2021 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 Electrification 13% Automotive (ATV) › CO2 saving › Energy efficiency Digitalization Industrial Power Control (IPC) 44% › Cost saving 29% › Productivity Power & Sensor Systems (PSS) › Comfort Connected Secure System

  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: Well-balanced portfolio among key trends Electrification and Digitalization

    Well-balanced portfolio among key trends Electrification 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

  5. Slide 5: Infineon is a global top-10 player, #1 in power semiconductors

    Infineon is a global top-10 player, #1 in power semiconductors, and ranked #3 in the overall microcontroller market Semiconductor suppliers Power discretes and modules MCU suppliers 2020 total market: $473bn1 2020 total market: $20.9bn2 2020 total market: $17.3bn1 Infineon 19.7% Renesas 17.2% Intel

  6. Slide 6: Outlook for Q1 FY22 and FY22

    Outlook for Q1 FY22 and FY22 Outlook Q1 FY221 Outlook FY221 Revenue ~ €3.0bn €12.7bn +/- €500m At the mid-point of the revenue guidance: Segment Result Margin ~ 21% ~ 21% Investments in FY22 ~ €2.4bn D&A in FY22 €1.6bn - €1.7bn2 Free cash flow in FY22 ~ €1.0bn 1 Based on an assumed average exchange

  7. Slide 7: 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 2021-11-10 Copyright © Inf

  8. Slide 8: 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 Cum. rev. growth FY21 to FY25e FY25e by division (indicative) by theme CSS CSS 13% 13% ATV 44% ATV Electrification 44% Digitalization €11.1bn €16bn+

  9. Slide 9: Key levers to get to target profitability

    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

  10. Slide 10: 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

  11. Slide 11: We focus our investments on 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

  12. Slide 12: ESG: targets and achievements

    ESG: targets and achievements 12

  13. Slide 13: We contribute a net CO2 reduction of more than 70 million tons

    We contribute a net CO2 reduction of more than 70 million tons CO2 burden1 2.18 million tons CO2 savings2 of CO2 equivalents Ratio ~1:33 72.45 million tons of CO2 equivalents Net ecological benefit: CO2 emissions reduction of more than 70 million tons Infineon is excellent in resource efficiency We

  14. Slide 14: Infineon is excellent in resource efficiency and committed to CO2 neutrality

    Infineon is excellent in resource efficiency and committed to CO2 neutrality – sustainability is in our DNA Infineon ranks among the 10 percent1 most sustainable companies in the world In CY19, we used resources in our manufacturing processes much more efficiently than the global average of the semi

  15. Slide 15: High-growth applications offer further additional 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

  16. Slide 16: 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 CCC to MSCI ESG AA 02/2021 AAA B climate scoring CDP F to A 12/2020 B water scoring Ecovadis 98th percentile “Gold” award 0 to 100 11/2020 81 Dow Jones Sustain- Dow Jones Sustainability Inde

  17. Slide 17: Infineon's Wide Band Gap Strategy

    Infineon's Wide Band Gap Strategy 17

  18. Slide 18: Leveraging full potential based on power ratings and switching frequency

    Leveraging full potential based on the power ratings and switching frequency required by the application Comparison of technologies Si Power › Si is the mainstream technology [W] › Targeting 25 V – 6.5 kV 10M › Suitable from low to high power SiC SiC 1M Central PV* › SiC complements Si in many appli

  19. Slide 19: SiC – Infineon is 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 2021-11-10 Copyright © Infineon Technologies AG 2021. All rights reserved.

  20. Slide 20: SiC – US$ billion revenue in sight

    SiC – US$ 1 billion revenue in sight SiC revenue development Infineon’s success factors › Best in class Trench MOSFET on the ~$1bn revenue market › 2nd Gen. CoolSiC™ Trench MOSFET will ~30% market share be launched in FY22 › Broadest portfolio fits customers’ individual needs Automotive >90% › Scala

  21. Slide 21: Cold Split technology reduces raw material losses during SiC manufacturing

    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

  22. Slide 22: Strong CoolSiC portfolio expansion

    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

  23. Slide 23: SiC and GaN capacity expansion to respond to fast growing demand

    SiC and GaN capacity expansion to respond to fast growing demand Villach, Austria › 150/200 mm Si lines will be converted to SiC and GaN manufacturing while reusing non specific equipment › → SiC capacity secured in Villach › → GaN scaling-up to volume manufacturing Further expansion in Kulim Kulim,

  24. Slide 24: GaN technology – Infineon 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): 76% Focus applications 801 10x > 2% 20% 25% 3x switching more power lower higher power less frequency effici

  25. Slide 25: Automotive

    Automotive Infineon

  26. Slide 26: 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

  27. Slide 27: Market outlook for ATV division's target applications

    Market outlook for ATV division’s target applications Applications Market Outlook for CY22 › Market demand-supply uncertainties to continue into CY22 due to COVID-19 pandemic and component supply limitations › Gradual easing of semiconductor shortages throughout the year expected; risks of further s

  28. Slide 28: 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 (2020 total market: $35.0bn) › Strengthened #1 position; increasing distance to #2 Infineon 13.2% › #1 in power semiconductors NXP 10.9% › Undisputed #1 in automotive

  29. Slide 29: Electromobility

    Electromobility ineon inf

  30. Slide 30: xEV sales more than doubled y-y in first nine months of CY21

    In the first nine month of CY21, xEV (PHEV + BEV) sales more than doubled y-y in all regions reaching ~4.5m units globally +138% +127% +105% +187% 4,427 12.2% [units k] [penetration %] 12.7% 4.4% 1,856 2,073 7.5% 4.1% 6.8% 1,629 2.0% 794 723 3.5% 477 210 Sep 20 Sep 21 Sep 20 Sep 21 Sep 20 Sep 21 Sep

  31. Slide 31: 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 > 50,000 inhabitants: no ICE on the street. 2035: › EU: all new cars zero-emission. 2040: Spain, cities with › China: public transport vehicles to be fully electri

  32. Slide 32: Penetration of PHEV + BEV accelerating; power semi content opportunity

    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

  33. Slide 33: About every second PHEV or BEV inverter uses Infineon power semiconductors

    For newly produced cars in CY21, about every second inverter for a PHEV or BEV car is equipped with Infineon power semiconductors 2021e PHEV + BEV inverters1 Ex. of OEMs powered by Infineon Examples of SiC design-wins Volkswagen German Luxury OEM Hyundai US OEM new! PHEV and BEV cars in 2021: NIO Mi

  34. Slide 34: Automated Driving

    Automated Driving Cinfineon

  35. Slide 35: The car of the future is 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

  36. Slide 36: AURIX MCU family 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

  37. Slide 37: Industrial Power Control

    Industrial Power Control Cinfineon

  38. Slide 38: 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

  39. Slide 39: Market outlook for IPC division's target applications

    Market outlook for IPC division’s target applications Applications Market Outlook for CY22 (% of FY21 segment revenue) Automation and Drives › After strong recovery in CY21, growth rates returning to long-term averages with demand still exceeding supply and long ~33% lead times in CY22. Renewable En

  40. Slide 40: 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

  41. Slide 41: Infineon will benefit from all CO2 saving measures

    Infineon will benefit from all CO2 saving measures CO2 (Gt / year) CO2 emissions „Planned Energy Scenario“ (2020 Policies) 35.000 33,000 Gt Others Fuel Switch 30.000 Buildings Hydrogen Production 21% Transport New Markets 6,200 Gt 25.000 Energy Efficiency Transport 8,600 Gt 27% Industry Wide Band Ga

  42. Slide 42: Solutions for all links in the energy conversion chain

    Infineon provides solutions for all links in the energy conversion chain 2021-11-10 Copyright © Infineon Technologies AG 2021. All rights reserved. 42

  43. Slide 43: 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

  44. Slide 44: What comes next? Structural growth opportunities

    What comes next? Mid- to long-term structural growth opportunities Core Adjacent New area Courtesy: Courtesy: Alstom Shakti pumps new material solar pumps fuel cell Courtesy: Siemens AG Courtesy: McKinsey EV charging energy storage eMarine Courtesy: Lilium GmbH collaborative robots eDelivery vehicle

  45. Slide 45: Power & Sensor Systems

    infineon Power & Sensor Systems

  46. Slide 46: 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

  47. Slide 47: Market outlook for PSS division's target applications

    Market outlook for PSS division’s target applications Applications Market Outlook for CY22 (% of FY21 segment revenue)1 Computing › Structural growth driven by cloud computing and to a lesser extent by enterprise servers ~20% › PCs for education likely to experience saturation Communication › 5G cyc

  48. Slide 48: 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

  49. Slide 49: PSS – Power

    PSS — Power Cinfineon

  50. Slide 50: 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

  51. Slide 51: Data center – AI hyperscaler and telecom/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

  52. Slide 52: 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 › 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

  53. Slide 53: What comes next? Structural growth opportunities

    What comes next? Mid- to long-term structural growth opportunities Core Adjacent New area 5G infrastructure smart building smart speaker hyperscale AI data center wireless charging health & lifestyle new material on-board charger environmental sensor solutions 2021-11-10 Copyright © Infineon Technol

  54. Slide 54: PSS – RF and Sensing

    S N PSS — RF and Sensing Infineon

  55. Slide 55: 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

  56. Slide 56: Sensor markets targeted by PSS 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:

  57. Slide 57: 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.

  58. Slide 58: 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

  59. Slide 59: Infineon 3D ToF is a versatile technology 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

  60. Slide 60: XENSIV PAS CO2 sensor enables highly-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

  61. Slide 61: System solution addresses 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

  62. Slide 62: Connected Secure Systems

    Cinfineon Connected Secure Systems

  63. Slide 63: 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

  64. Slide 64: Market outlook for CSS division's target applications

    Market outlook for CSS division’s target applications Applications Market Outlook for CY22 (% of FY21 segment revenue) Industrial IoT › Growth momentum in industrial segments to continue into CY22 › Further growth momentum across smart home devices expected Industrial and Consumer › Increasing penet

  65. Slide 65: 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

  66. Slide 66: 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

  67. Slide 67: Key enabling technologies to capture growth: 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

  68. Slide 68: One-stop-shop: 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

  69. Slide 69: Driving the smart home opportunity with market-shaping 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

  70. Slide 70: Significant 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

  71. Slide 71: 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

  72. Slide 72: 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

  73. Slide 73: Selected financial figures

    Selected financial figures 73

  74. Slide 74: Strong presence in all regions; well-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

  75. Slide 75: Group financial performance

    Group financial performance Revenues and segment result USD exchange rate [EUR m] Revenues Segment result Margin Average exchange rate 3,007 60,0% Q4 Q3 Q4 2,631 2,700 2,722 FY20 FY21 FY21 2,490 50,0% ø USD/EUR 1.17 1.20 1.18 40,0% 2.000 Book-to-bill1 30,0% 20.5% 18.6% 17.4% 18.2% 2.42 15.2% 20,0% 2

  76. Slide 76: Automotive (ATV)

    Automotive (ATV) Revenues1 Segment Result1 Margin Book-to-bill [EUR m] [EUR m] 211 197 199 1,219 1,205 1,267 185 2.52 1,150 2.3 2.32 1,045 1.5 16.1% 16.2% 16.5% 16.7% 1.3 59 5.6% Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 FY20 FY21 FY21 FY21 FY21 FY20 FY21 FY21 FY21 FY21 FY20 FY21 FY21 FY21 FY21 ›

  77. Slide 77: Industrial Power Control (IPC)

    Industrial Power Control (IPC) Revenues Segment Result Margin Book-to-bill [EUR m] [EUR m] 412 407 362 361 82 349 72 69 2.01 61 59 1.81 1.6 1.4 1.1 19.8% 19.9% 16.9% 17.7% 16.3% Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 FY20 FY21 FY21 FY21 FY21 FY20 FY21 FY21 FY21 FY21 FY20 FY21 FY21 FY21 FY21 ›

  78. Slide 78: Power & Sensor Systems (PSS)

    Power & Sensor Systems (PSS) Revenues Segment Result Margin Book-to-bill [EUR m] [EUR m] 945 276 2.51 779 787 757 759 209 197 184 1.9 29.2% 1.81 27.5% 167 1.6 25.3% 23.4% 1.2 22.1% Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 FY20 FY21 FY21 FY21 FY21 FY20 FY21 FY21 FY21 FY21 FY20 FY21 FY21 FY21 FY21

  79. Slide 79: Connected Secure Systems (CSS)

    Connected Secure Systems (CSS) Revenues1 Segment Result1 Margin Book-to-bill [EUR m] [EUR m] 3.42 386 346 60 2.6 333 335 329 2.6 45 47 2.12 42 30 1.1 13.6% 15.5% 12.6% 13.4% 9.1% Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 FY20 FY21 FY21 FY21 FY21 FY20 FY21 FY21 FY21 FY21 FY20 FY21 FY21 FY21 FY21 ›

  80. Slide 80: Gross margin and Opex

    Gross margin and Opex Gross profit R&D SG&A [EUR m] Gross profit as reported [EUR m] R&D expenses [EUR m] SG&A expenses Gross margin as reported R&D expenses as % of revenue SG&A expenses as % of revenue 1,238 399 376 373 1,065 341 342 985 972 333 328 308 308 311 793 39.1% 41.2% 37.4% 36.0% 31.8% 12

  81. Slide 81: RoCE and adjusted RoCE

    RoCE and adjusted RoCE Historical development of RoCe and adjusted RoCE 35% 25% 15% 5% FY18 FY19 FY20 FY21 Q4 FY20 Q1 FY21 Q2 Q3 Q4 -5% Adjusted RoCE (excl. effects from International Rectifier and Cypress acquisition, Deferred Tax Effects, RF Power sale) RoCE 2021-11-10 Copyright © Infineon Technol

  82. Slide 82: D&A mainly impacted by Cypress PPA

    D&A mainly impacted by Cypress PPA Investments* Depreciation & Amortization ~2,400 [EUR 2400 m] [EUR m] 50% 2200 2000 1800 40% 1.6bn – 1.7bn 1600 1,497 1,513 1,451 1400 1,254 1,260 30% 473 1200 1,099 293 1,022 945 1000 826 833 812 861 87 20% 800 140 103 18.1% 129 ~18,9% 600 16.5% 14.7% 12.8% 14.5% 1

  83. Slide 83: 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] 36 41 28 27 EPS basic 20 19 24 15 18 8 EPS adjusted Q4 FY20 Q1 FY21 Q2 Q3 Q4 Total cash return to shareholders [EUR m] 336 351 › Proposed dividend for FY21: €0.27 283 305 286 per sh

  84. Slide 84: Working Capital, in particular trade working capital components

    Working Capital, in particular trade working capital components Working capital1 Inventories [EUR m] [EUR m] [days] 2,052 1,955 2,053 2,181 1,937 1,007 993 945 855 711 109 107 101 112 111 Q4 FY20 Q1 FY21 Q2 Q3 Q4 Q4 FY20 Q1 FY21 Q2 Q3 Q4 Inventories DIO¹ Trade receivables Trade payables [EUR m] [day

  85. Slide 85: Liquidity development

    Liquidity development Historical liquidity development [EUR m] 3,922 3,863 3,444 3,334 3,227 Q4 Q1 Q2 Q3 Q4 -6,585 -2,663 -6,808 -2,945 -6,703 FY20 FY21 -3,369 -6,859 -3,415 -7,033 -3,806 Gross Cash Gross Debt Net Cash/Debt 2021-11-10 Copyright © Infineon Technologies AG 2021. All rights reserved. 8

  86. Slide 86: Maturity profile

    Maturity profile Maturity profile from 2021 to 2033 [EUR m; US$ m; nominal values] Eurobond (Mar 2022) US PP Notes (Apr 2024, Apr 2026, Apr 2028) Term loans (Sep 2023, Jun 2024) Hybrid bonds1 (Jan 2025, Jan 2028) Corporate bonds under the EMTN program US PP 2021 Notes (Jun 2027, Jun 2029, (Jun 2023,

  87. Slide 87: Conservative financial policy and commitment to 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 30 September 2021) Gross Cash1 €1bn + at least 10% of revenues → €2.1bn €1bn + 26% of revenues → €3.9bn Gross Debt2 ≤ 2.0x EBITDA 2.2x

  88. Slide 88: Part of your life. Part of tomorrow.

    Cinfineon Part of your life. Part of tomorrow.

  89. Slide 89: Glossary (1 of 2)

    Glossary (1 of 2) ABB accelerated book building ECC error correction code ABS anti-blocking system ECU electronic control unit AC alternating current EPS electric power steering AC-DC alternating current - direct current eSIM embedded subscriber identity module AD automated driving ESS energy storag

  90. Slide 90: Glossary (2 of 2)

    Glossary (2 of 2) IVN in-vehicle networking PTC positive temperature coefficient LCD liquid crystal display PV photovoltaic LDO low dropout voltage regulator RF radio frequency LED light-emitting diode rhs right-hand scale LSEV low-speed electric vehicle Si silicon LSPS LS Power Semitech Co. Ltd. Si

  91. Slide 91: 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

  92. Slide 92: Financial calendar

    Financial calendar Date Location Event 17 – 18 Nov 2021 Barcelona → virtual Morgan Stanley TMT Conference 19 Nov 2021 Hong Kong → virtual JPMorgan 9th Global TMT Conference Asia 29 Nov – 2 Dec 2021 Scottsdale (AZ) Credit Suisse TMT Conference 2 Dec 2021 Paris → virtual Société Général Premium Review

  93. Slide 93: 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 –

  94. Slide 94: 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

  95. Slide 95: 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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