Slide 1: Third Quarter FY 2024 Quarterly Update
Third Quarter FY 2024 Quarterly Update Infineon Technologies AG Investor Relations 1
Slide 2: Infineon at a glance
Infineon at a glance Addressing long-term high-growth trends FY23 revenue by segment Automotive (ATV) 13% Green Industrial Power (GIP) Power & Sensor Systems (PSS) 23% 51% Connected Secure Systems (CSS) Energy Mobility IoT green and efficient clean and safe smart and secure 13% Financials FY23 reven
Slide 3: Well-balanced portfolio among segments and key applications
Well-balanced portfolio among segments and key applications, highest growth coming from Decarbonization and Digitalization FY23 revenue of €16,309m by segment and key application CSS E-mobility 13% 14% Other 29% Renewables 7% 5% ADAS PSS 23% ATV 51% 5% 3% IoT Payment 2% 4% BPA/Power Tools 4% AI/Data
Slide 4: Global player, clear #1 in power semiconductors
Infineon is a global player, clear #1 in power semiconductors, and ranked #2 in the overall microcontroller market Semiconductor suppliers Power discretes and modules Microcontroller suppliers 2023 total global market: USD 544bn1 2022 total global market: USD 30.9bn2 2023 total global market: USD 28
Slide 5: Our Target Operating Model
Our Target Operating Model: committing to ambitious financial goals and being the sustainability leader Target Operating Model through cycle Revenue growth >10% Segment Result Margin 25% Adj. Free Cash Flow Margin1 10-15% Sustainability leader CO2 neutrality 2030 1 Excluding major frontend buildings
Slide 6: Double-digit growth ahead – five key applications
Double-digit growth ahead – five key applications account for ~60% of growth; well-diversified divisional split FY23 FY22-27e Revenue by division Revenue growth contribution by driver CSS E-Mobility 13% Other Renewables PSS ATV 23% €16.3bn 51% >10% ADAS CAGR AI/Data center IoT GIP Through cycle grow
Slide 7: Target Operating Model: significant margin expansion through the cycle
Our Target Operating Model: significant margin expansion through the cycle Former FX Upgraded System Portfolio Manu- OPEX Currency Increased Pre-funding solutions & management, facturing scaling costs system value-based technology/ productivity: solutions, High pricing product mix 300mm share SiC/Ga
Slide 8: Free Cash Flow generation increasing over the cycle
Free Cash Flow generation increasing over the cycle, driven by profitable growth and better asset efficiency [EUR bn] Operating cash flow increased sustainably ‒ Accretive investments 6 into high organic growth 5 ‒ Operating cash flow expected 4 to outgrow investments mid-/long-term 3 ‒ Differentiat
Slide 9: Outlook for Q4 FY24 and FY24
Outlook for Q4 FY24 and FY24 Outlook Outlook Q4 FY241 FY241 Revenue ~€4.0bn ~€15.0bn Adj. Gross Margin low-forties Segment Result Margin ~20% ~20% FCF/adj. FCF ~€-200m/~€1.5bn Investments ~€2.8bn D&A ~€1.9bn2 1 Based on an assumed average exchange rate of $1.10 for €1.00 2 Including the amortization
Slide 10: Undisputed power systems leadership mastering all three key materials
Undisputed power systems leadership mastering all three key materials Reliable multi sourcing Application of raw materials Si/SiC/GaN understanding Packaging know-how and World-scale fabs hybridization competence Controller Driver IC Power switch Software + Algorithms Leadership in Power Systems acr
Slide 11: Infineon at the core of IoT
Infineon at the core of IoT – driving digitalization by serving strongly growing multi-application markets Consumer IoT Industrial IoT Automotive IoT Products: MCU – Connectivity (Wi-Fi, BLE, NFC) – Sensors – Security – Power supply & switches Coin cell- at the core o Battery- powered ineon f Io Pow
Slide 12: ESG: Targets and achievements
ESG: Targets and achievements 2024-08-05 Copyright © Infineon Technologies AG 2024. All rights reserved. 12
Slide 13: 2030 carbon neutrality goal aligned with Paris 1.5°C target
Our 2030 carbon neutrality goal is aligned with the Paris Climate Agreement’s 1.5°C target CO2 burden1 CO2 savings2 3.4 million tons of CO2 equivalents 116.6 million tons of CO2 equivalents Ratio ~1:34 On the road to carbon neutrality3 we achieved Infineon’s CO2 target3 by 2025 and 2030 significant
Slide 14: External recognitions confirm our engagement in sustainability
External recognitions confirm our engagement in contributing to a sustainable society Rating/Score Scale Date MSCI ESG AAA CCC to AAA 05/2024 B climate scoring CDP F to A 02/2024 B water scoring Ecovadis 99th percentile “Platinum” award 0 to 100 06/2024 77 Dow Jones Sustainability Dow Jones Sustaina
Slide 15: Infineon's wide bandgap strategy
Infineon’s wide bandgap strategy 2024-08-05 Copyright © Infineon Technologies AG 2024. All rights reserved. 15
Slide 16: Kulim 3 opening: most competitive provider of SiC technology
With opening Kulim 3, Infineon is on track to becoming the industry's most competitive provider of SiC technology SiC raw material supplier network ‒ More than 6 qualified SiC wafer and boule suppliers ‒ Globally diversified and resilient Superior trench technology ‒ 30% more chips per wafer than pl
Slide 17: Smart phase-over and ramp-up of 200mm SiC production
Smart phase-over and ramp-up of 200mm volume production to enable next level of innovation for customer value with SiC Villach Kulim CoolSiC 200mm Pilot projects on track Smart 200mm phase-over Timeline ‒ Qualification on selected ‒ Volume production in Villach ‒ Product roll-out based on high-volum
Slide 18: Expansion of Kulim backed by long-term customer commitments
Expansion of Kulim 3 backed by strong long-term customer commitments Automotive Industrial (incl. PV and ESS) A total of 6 OEMs A total of 5 major customers Design-wins: ~ €5bn Related customer pre-payments: ~ €1bn ‒ Phase 2 of Kulim module 3 expansion is backed by numerous customer commitments ‒ Si
Slide 19: Unveiling a new performance budget with CoolSiC G2
Unveiling a new performance budget with CoolSiCTM G2 Figures-of-merit (FOM) comparison: lower is better for energy efficiency optimization The classical MOSFET FOM (from low-voltage silicon world) DC-DC RDSON x QGD (mΩ*µC) RDSON x QOSS (mΩ*µC) RDSON x EOSS(mΩ*µJ) RDS x QG (mΩ*µC) at 150°C, 800 V, 28
Slide 20: Leadership in Power Systems with the most comprehensive GaN portfolio
Continuing our leadership in Power Systems with the most comprehensive GaN portfolio Leading IP & strongest R&D force Leveraging foundry + IDM advantages Leading ~450 strong Best-in-class We own We combine We target patent GaN team application key IP and all foundry partner- a leading high double-di
Slide 21: GaN expected to be preferred technology in multiple applications by 2030
GaN expected to be the preferred technology in multiple core applications by 2030, different transition paths shaping up GaN tipping point reached/in sight GaN transition coming up 2020 2030 2020 2030 HV HV Low-power Charger motor control DC/DC DC/DC Server HV HV Residential Solar On-board HV DC/DC
Slide 22: Automotive
Automotive 2024-08-05 Copyright © Infineon Technologies AG 2024. All rights reserved. 22
Slide 23: ATV at a glance
ATV at a glance ATV revenue and Segment Result Margin FY23 revenue split by product group [€ m] Memory ICs CAGR 23.9% (FY19 – FY23 ) 9.000 8,242 37% MCUs 8.000 7.000 6,516 27% 6.000 28% 4,841 5.000 23% 4.000 3,503 3,521 17% 16% 3.000 2.000 12% 7% 1.000 4% Power (incl. SiC) 0 -3% FY19 FY20 FY21 FY22
Slide 24: 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 (2023 total market: $69.2bn; +16.5% y-y) ‒ Infineon grew by 26% y-y, gaining 1.0%-pts of market share Infineon 13.7% to 13.7%, the highest level ever NXP 10.8% ‒ Infi
Slide 25: Automotive semiconductor market growth even at flat vehicle production
Automotive semiconductor market expected to continue its growth journey even at flat light vehicle production growth Applications Market outlook for CY24 ‒ Stable vehicle production in 2024 Automotive ‒ Vehicle affordability concerns persist, despite recent OEM price cuts ‒ No major semiconductor sh
Slide 26: Strong content growth drivers for Infineon
Several strong content growth drivers for Infineon, even at flat LV production Several structural trends fueling our growth Overview of growth vectors until 2030 2023 2030 xEV ‒ Strong volume growth of BEVs and PHEVs Share of BEVs Update as of ‒ Increasing share of SiC in traction inverters ~15% ~40
Slide 27: World leader in automotive semis benefiting from content growth
Infineon is the world leader in automotive semis, serving all key applications and benefiting strongly from content growth Semiconductor bill-of-material in a car in 2024 and 2030 [USD] up to $2,000 per BEV Key applications for drivetrain semis: ‒ Inverter ‒ On-board charger (OBC) ~$1,300 per BEV ‒
Slide 28: Broad portfolio with >300 product families in Automotive
A very broad portfolio with >300 product families is backing the market leadership of Infineon in Automotive Infineon ATV division revenue by product families: Major categories1: AURIX families, CoolSiC , IGBT 750V, IGBT 1200V, MOSFETs, PROFET , Radar, TRAVEO – none more than ~10% Unmatched customer
Slide 29: Number of power MOSFETs per car continues to increase
Number of power MOSFETs per car continues to increase, and drives accelerated growth for the leading portfolio Examples of MOSFET applications Latest portfolio with constant innovation Technologies, packages and voltages OptiMOS 7 40 V Power door Power Brake Electric power BMS Transmission Windshiel
Slide 30: Electromobility
Electromobility 2024-08-05 Copyright © Infineon Technologies AG 2024. All rights reserved. 30
Slide 31: Xiaomi SU7 Max: Infineon contributes >60 different components
Xiaomi SU7 Max: Infineon contributes > 60 different components, incl. 2x HybridPACK Drive G2 CoolSiC 1200 V power modules Infineon provides system solutions with > 60 different components for more than 10 applications › MCUs, PMICs: AURIX TC3, TRAVEO T2G, and PSoC for zone controller, ADAS, xEV driv
Slide 32: Broad product portfolio and system understanding
Infineon’s broad product portfolio and system understanding enable higher BoM and allows for compact designs and fast T2M Infineon inverter reference design, covering up to 95% of value P2S (product-to-system approach) ‒ Reference design for up to 300 kW, further customization possible OPTIREG 32-bi
Slide 33: Infineon and Swoboda jointly develop current sensor modules
Infineon and Swoboda jointly develop high-performance current sensor modules for automotive applications Core-less sensor Core-based sensor ‒ The novel core-less sensing technology enables highly sensor IC miniaturized integrated sensor modules by discarding the sensor IC field bulky core concentrat
Slide 34: First Si/SiC fusion module concept (Si2C)
First Si/SiC fusion module concept (Si2C) significantly exceeding performance expectations without adding system complexity Si Si²C +2.9% SiC +3.5% Example: 400 V BEV 175 kW 2WD Infineon solution offers compelling cost- performance ratio without adding system complexity for customers 2024-08-05 Copy
Slide 35: World-scale capacity and portfolio breadth lead to accelerated SiC growth
World-scale capacity, unmatched portfolio breadth and our worldwide customer base lead to accelerated growth in SiC Leading SiC technology and production efficiency Most scalable SiC auto portfolio 650 V 750 V 1,200 V ‒ Unrivaled productivity with world- scale fab and most diversified supplier netwo
Slide 36: Extended BMS product portfolio
Infineon’s extended BMS (battery management system) product portfolio paves the way for an exceptional growth story Demand for BMS analog frontend ICs driven by BEV battery capacity BMS analog frontend IC [GWh] Infineon’s revenue growth ~20x Source: S&P Global Mobility, December 2023 ‒ Drivers for B
Slide 37: AURIX TC4x with integrated PPU brings AI-on-the-edge to the battery
Infineon AURIX TC4x with integrated PPU brings AI-on-the-edge to the battery AURIX TC4x Efficient battery cell utilization Battery cost ‒ Higher capacity PPU ‒ Less cells Battery health (parallel processing unit) ‒ Lower battery cost Faster charging High computing performance with complex Charging s
Slide 38: Automated Driving
Automated Driving 2024-08-05 Copyright © Infineon Technologies AG 2024. All rights reserved. 38
Slide 39: AURIX MCU is the gold standard for ADAS/AD
AURIX MCU is the gold standard for ADAS/AD, control, safety, and high-speed in-vehicle network Total automotive MCU market development, excl. MPUs and SoCs AURIX , TRAVEO , and PSoC families [USD bn] TechInsights: Automotive Semiconductor Demand Forecast. October 2023 Infineon’s revenue growth €19bn
Slide 40: Growth of L1/L2/L2+ main driver of ADAS semiconductor content
Growth of L1/L2/L2+ is the main driver of ADAS semiconductor content until 2030 Car production by degree of automation (SAE level) Radar is essential to meet decisive requirements of ADAS/AD Distance 5 L0 4,5 4 3,5 Lane Detection Speed 3 L0 2,5 2 L1 1,5 1 0,5 0 L1/L2/L2+ Traffic signs Angle to reach
Slide 41: E/E architecture
E/E architecture 2024-08-05 Copyright © Infineon Technologies AG 2024. All rights reserved. 41
Slide 42: Infineon benefits from new E/E architectures
Infineon strongly benefits from new E/E architectures that drive centralization of data and decentralization of power distribution E/E architecture in a software-defined vehicle Components of E/E architecture and corresponding applications addressed by Infineon Safety companion MCU for service- High
Slide 43: Power distribution critical in E/E architecture
Power distribution becomes a critical aspect of the E/E architecture and the SW-defined vehicle New applications for intelligent power distribution ... ... are driving replacement of fuses/relays PROFET smart switch Fuse Relay Smart switches are mandatory for SAE L3 and above Infineon’s revenue grow
Slide 44: Green Industrial Power
Green Industrial Power 2024-08-05 Copyright © Infineon Technologies AG 2024. All rights reserved. 44
Slide 45: GIP at a glance
GIP at a glance GIP revenue and Segment Result Margin FY23 revenue split by product group [€ m] Discretes CAGR 11.7% (incl.SiC) Modules (FY19 – FY23 ) (incl. SiC) 2.500 2,205 2.000 1,790 1,418 1,406 1,542 30% 1.500 21% Gate driver ICs 1.000 18% 18% 18% 500 0 FY19 FY20 FY21 FY22 FY23 GIP revenue GIP
Slide 46: Clear leader in discrete IGBTs and IGBT modules
Clear leader in discrete IGBTs and IGBT modules Discrete IGBTs IPMs1 IGBT modules2 2022 total market: $2.5bn 2022 total market: $2.1bn 2022 total market: $4.4bn Infineon 32.1% Mitsubishi 24.3% Infineon 31.7% Fuji 15.9% Sanken 14.3% Mitsubishi 11.9% STMicro 8.5% onsemi 13.0% Fuji 11.7% Mitsubishi 6.5
Slide 47: Power Infrastructure demand strong while inventory corrections persist
Power Infrastructure demand remains strong while in major verticals inventory corrections persist Applications % of FY23 segment revenue1 Market outlook for CY24 ~26% ‒ PV installations continue to grow, in 2024 channel inventory limits PV inverter shipments and semi demand Renewable ‒ Wind installa
Slide 48: Highest power density with 2000 V SiC modules for grid storage
Infineon is offering the industry's highest power density with leading 2000 V SiC modules for grid storage Infineon chip & module technology used in the customer application − 62 mm CoolSiC MOSFET module 2000 V Daihen uses CoolSiC 2000 V modules for their innovative unit-type power conditioners for
Slide 49: Huge potential along green energy chain until 2030
Huge potential along entire green energy chain until 2030 according to IEA Net Zero scenario Generation Infrastructure Consumption $600bn annual Photovoltaic +4,600 GW Grid network Heat pump +420m units investments +200k FC EV Wind power +1,900 GW Grid storage +900 GW H2 Fuel cell1 +200k FC Trucks +
Slide 50: Green energy generation provides large business opportunities
Green energy generation provides large business opportunities Power semiconductor content by application 6000 [EUR per MW] [EUR per installation] Mainly SiC 5000 5000 5000 Mainly IGBT 4000 3500 3500 3000 2000 2000 2500 2000 1000 1500 1000 0 60 600 500 0 0 100 40 Fossil, nuclear, Wind Solar Grid-scal
Slide 51: EV charging is a key strategic application
EV charging is a key strategic application for Infineon We cover the full ecosystem from AC to high power DC charging Connectivity solutions Automotive systems High power industrial systems Wirless Charging DC High Power Charging Infineon targets the complete EV charging ecosystem from AC to high-po
Slide 52: Power & Sensor Systems
Power & Sensor Systems 2024-08-05 Copyright © Infineon Technologies AG 2024. All rights reserved. 52
Slide 53: PSS at a glance
PSS at a glance PSS revenue and Segment Result Margin FY23 revenue split by product group [€ m] RF & Sensors CAGR 11.6% (FY19 – FY22 ) HiRel 4.500 4,070 3,798 4.000 3.500 3,268 3.000 2,445 2,650 2.500 2.000 1.500 25% 28% 1.000 24% 24% 23% Power (incl. GaN) 500 0 FY19 FY20 FY21 FY22 FY23 PSS revenue
Slide 54: Recovery in AI power and smartphones ongoing
Recovery in AI power and smartphones ongoing, in other verticals weakness to persist until end of CY 2024 Applications % of FY23 segment revenue1 Market outlook for CY24 ~15% ‒ Server market showing YoY growth in CY24, especially benefiting from AI opportunities Computing ‒ PC shipments are expected
Slide 55: Clear leader in MOSFETs, growth potential in power ICs
Infineon is the clear leader in MOSFETs, additional growth potential in power ICs Discrete Power MOSFETs1 Power ICs2 2022 total market: USD 13.1bn 2022 total market: USD 32.3bn Infineon 26.7% Texas Instruments 14.7% onsemi 12.6% Analog Devices 11.5% STMicro 11.0% Qualcomm 8.4% Toshiba 5.3% Infineon
Slide 56: Average Infineon BOM per AI server
Average Infineon BOM per AI server about 850 to 1800 USD DC/DC AI card converter GPU / TPU (power stages or inductor-on-top modules) 48-12V: 50-200 USD 10 USD x8 Server Motherboard 50-60 USD GPU tray x1 Chassis Power supplies Motherboard 1 Server rack includes x6 Power supply (AC/DC) (Si-, SiC and G
Slide 57: PSU solutions for AI and data centers from 3 kW to 12 kW
For AC/DC, Infineon is addressing the growing power demand of AI and data centers with PSU solutions ranging from 3 kW – 12 kW 3 kW 3.3 kW 8 kW 12 kW η 97.5% η 97.5 % η ~97.5% η ~97.5% 32 W/in³ 95 W/in³ 100 W/in³ 100 W/in³ Available now Available now Available in Q1/25 Coming soon 2024-08-05 Copyrig
Slide 58: Dual-phase power modules and backside mounting
Best-in-class energy efficiency, power density and TCO through Infineon’s Dual-phase power modules and backside mounting Power delivery network Power design Discrete solution Module solution Equivalent discrete solution Infineon’s dual-phase modules with inductor-on-top design 10% of input power los
Slide 59: Better efficiency for inductor-on-top vs competitor modules
Better efficiency for Infineon’s inductor-on-top vs competitor’s power-stage-on-top modules Patented vertical inductor CoolCore Magnetics technology enables true vertical power delivery in combination with trench OptiMOS MOSFET and is mechanically more robust Competitor: Infineon: power stage cooled
Slide 60: AI will be a strong driver of server business revenue
AI will be a strong driver of revenue increase for Infineon’s server business Large North American CPU/GPU manufacturer B In FY24 AI revenue Infineon AI server revenue Large North in our server business is American cloud provider B expected to be a Large North American cloud provider A low-triple di
Slide 61: Connected Secure Systems
Connected Secure Systems 2024-08-05 Copyright © Infineon Technologies AG 2024. All rights reserved. 61
Slide 62: CSS at a glance
CSS at a glance CSS revenue and Segment Result Margin FY23 revenue split by product group [€ m] CAGR 33.6% MCUs (FY19 – FY23 ) 2.500 Security ICs 2,046 2.000 1,822 1.500 1,397 974 1.000 642 500 21% 24% Connectivity 12% 13% 13% 0 FY19 FY20 FY21 FY22 FY23 CSS revenue CSS Segment Result Margin Key cust
Slide 63: Market demand remains weak across consumer segments
Market demand remains weak across consumer segments influenced by high inventories and continuing macro economic risks Applications % of FY23 segment revenue Market outlook for CY24 ‒ Macroeconomic headwinds continue to slow growth. Industry 4.0 and Industrial IoT trends persist. The market is Indus
Slide 64: CSS product portfolio and roadmap for IoT
CSS offers a compelling product portfolio and roadmap for IoT Microcontrollers (PSoC and XMC ) AIROC Wi-Fi and Combos ‒ PSoC family for general purpose, ‒ Wi-Fi standalone and Wi-Fi & Bluetooth® XMC family for industrial Combo chips for end devices ‒ Strength in low power, high ‒ Focus on innovation
Slide 65: Next-generation PSOC Edge portfolio
Next-generation PSOC Edge portfolio: Infineon PSOC Edge E81, E83 and E84 microcontroller families PSOCTM Edge – Enables a new generation of responsive machine learning devices Fully integrated system-on-chip (SoC) devices supported with comprehensive system design tools and software. Based on the hi
Slide 66: PSoC AI evaluation kit for Edge AI
PSoC 6 AI evaluation kit is Infineon’s hardware platform to experience Edge AI offering Infineon’s PSoC 6 Artificial Intelligence evaluation kit Target Use Cases − Comprehensive kit for intelligent applications − Sound detection − Integrated Infineon’s MCU, sensors, connectivity, and software tools
Slide 67: Customized Machine Learning on PSOC Edge with Imagimob
Customized Machine Learning on PSOC Edge with Imagimob Studio and ModusToolbox With the seamless integration of Imagimob Studio and ModusToolbox companies can build and deploy robust machine learning models. When paired with PSOC Edge, companies can optimize power consumption and improve efficiency
Slide 68: Journey to becoming a leading IoT solution provider
Financial synergy success marked by our journey to becoming a leading IoT solution provider STEP 1 STEP 2 STEP 3 STEP 4 Product Sell Synergy Sell System Sell Solution Sell Products: Products: Products: Additional offering: Sensors Sensors Wireless and MCU Performance Power Power Hardware Security Ad
Slide 69: Selected financial figures
Selected financial figures 2024-08-05 Copyright © Infineon Technologies AG 2024. All rights reserved. 69
Slide 70: 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 FY23 revenue by region Revenue by sales channel Distribution Top-10 direct customers1 partners1 Americas EMEA (excl. Germany) 15% 14% Japan Germany 11% 12% Distribution Top-10 direct
Slide 71: Group financial performance
Group financial performance Revenues and Segment Result USD exchange rate [EUR m] Average revenue exchange rate Segment Result Revenues Segment Result Margin -9% Q3 Q2 Q3 +2% FY23 FY24 FY24 4,149 ø USD/EUR 1.09 1.09 1.08 4,089 3,702 3,632 3,702 Order backlog1 [EUR bn] 32 29 24 24 22 26.1% 25.2% 22.4
Slide 72: Automotive (ATV)
Automotive (ATV) Revenues Segment Result [EUR m] [EUR m] Revenues Segment Result Segment Result Margin -1% +2% 2,129 2,162 2,085 2,078 2,112 583 617 564 537 512 27.4% 28.5% 27.1% 24.6% 25.4% ‒ Slight q-o-q revenue increase – volume gains in microcontrollers moderately exceeding ongoing inventory cor
Slide 73: Green Industrial Power (GIP)
Green Industrial Power (GIP) Revenues Segment Result [EUR m] Revenues [EUR m] Segment Result Segment Result Margin -16% +1% 565 582 487 469 475 171 166 130 30.3% 89 88 28.5% 26.7% 19.0% 18.5% ‒ Stable revenue trend, reflecting late-cycle business ‒ Industrial demand stabilized on a low level; invent
Slide 74: Power & Sensor Systems (PSS)
Power & Sensor Systems (PSS) Revenues Segment Result [EUR m] [EUR m] Segment Result Segment Result Margin Revenues -18% +5% 917 912 765 749 191 713 172 99 20.8% 18.9% 64 70 12.9% 9.0% 9.3% ‒ PSS turning the corner after six quarters of revenue decline; rising underutilization charges capping margin
Slide 75: Connected Secure Systems (CSS)
Connected Secure Systems (CSS) Revenues Segment Result [EUR m] Revenues [EUR m] Segment Result Segment Result Margin -23% -1% 474 490 371 366 119 364 90 25.1% 37 42 42 18.4% 10.2% 11.3% 11.5% ‒ Revenue continues to stabilize as IoT and security market demand is bottoming ‒ Distributor inventories wo
Slide 76: Gross margin and Opex
Gross margin and Opex Gross profit R&D SG&A [EUR m] [EUR m] [EUR m] 1,821 1,807 1,599 1,490 1,403 496 518 512 509 487 396 399 395 375 390 44.5 % 43.6 % 43.2 % 38.6 % 40.2 % 12.1% 12.5% 13.8% 13.4% 13.7% 10.7% 10.3% 10.5% 9.7% 9.6% Gross margin as reported Gross profit as reported R&D expenses as % o
Slide 77: 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] 1,057 614 768 393 700 326 653 643 470 450 456 467 441 82 -1,597 2024-08-05 Copyright © Infineon Technologies AG 2024. All rights reserved. 77
Slide 78: Working capital, in particular trade working capital components
Working capital, in particular trade working capital components Working capital1 Inventories [EUR m] [EUR m] [days] 3,503 3,477 3,754 3,974 4,330 4,404 4,429 2,901 185 178 180 2,071 1,763 149 153 Trade receivables Trade payables [EUR m] [days] [EUR m] [days] 2,765 2,014 1,991 2,000 2,142 2,193 2,160
Slide 79: Return on capital employed
Return on capital employed Historical development 18.0% 16.6% 15.8% 12.6% 10.9% 8.4% 7.5% 7.8% 2024-08-05 Copyright © Infineon Technologies AG 2024. All rights reserved. 79
Slide 80: 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] 63 68 57 65 45 53 42 43 30 30 EPS basic EPS adjusted Total cash return to shareholders via dividends [EUR m] 456 417 ‒ Dividend for 336 351 283 305 286 FY24: €0.35 per share 248 ‒ D
Slide 81: Development of liquidity and debt
Development of liquidity and debt Capital structure [EUR m] Gross Cash Gross Debt Net Cash/Debt 3,590 2,986 2,712 2,583 2,345 -4,733 -1,143 -4,679 -1,693 -5,398 -2,686 -5,386 -3,041 -5,941 -3,358 ‒ Repayment of 350m USD debt at maturity 2024-08-05 Copyright © Infineon Technologies AG 2024. All right
Slide 82: Maturity profile
Maturity profile Calendar years 2024 to 2033 [EUR m; USD m; nominal values] $350 €600 €750 $350 €600 €750 €650 €500 €500 €500 $350 $350 $235 $250 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Corporate bonds under the EMTN program US PP 2016 Notes Hybrid bonds1 US PP 2021 Notes (Jun 2027, Bilate
Slide 83: 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 30 June 2024) Gross Cash1 €1bn + at least 10% of revenues → €2.5bn €1bn + 9% of revenues → €2.3bn Gross Debt2 ≤ 2.0x EBITDA 1.2x EBITDA
Slide 84: Cinfineon
Cinfineon
Slide 85: 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
Slide 86: Glossary
Glossary AC alternating current IGBT insulated gate bipolar transistor ACC adaptive cruise control IoT internet of things AD automated driving IPM intelligent power module ADAS advanced driver assistance system LED light-emitting diode AEB autonomous emergency braking MCU microcontroller uni AI arti
Slide 87: 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 –
Slide 88: Financial calendar
Financial calendar Date Event Location 27 Aug 24 Jefferies Global Semiconductor, IT Hardware & Communications Technology Conference Chicago 28 Aug 24 DB Dana Point Conference Los Angeles 4-5 Sep 2024 DB Access European TMT Conference London 4-5 Sep 2024 Citi Global Technology Conference New York 23
Slide 89: Investor Relations contacts
Investor Relations contacts Alexander Foltin Daniel Györy Executive Vice President Senior Director Finance, Treasury & Investor Relations Team lead Investor Relations +49 89 234-23766 +49 89 234-35078 alexander.foltin@infineon.com daniel.gyoery@infineon.com Isabell Diel Alexander Groschke Senior Man