Infineon Technologies Ag · XETR:IFX

Infineon Technologies — Q1 FY2020 Earnings Presentation

75 slides from Infineon Technologies's earnings presentation, Mar 26, 2020

Slide 1: First Quarter FY 2020 Quarterly Update
First Quarter FY 2020 Quarterly Update Infineon Technologies AG Investor Relations
Slide 2: Agenda
Agenda 1 Infineon at a glance 2 Planned acquisition of Cypress 3 Quarterly highlights 4 Automotive 5 Industrial Power Control 6 Power Management & Multimarket 7 Digital Security Solutions 8 Selected financial figures 2020-03-26 Copyright © Infineon Technologies AG 2020. All rights reserved. 2
Slide 3: Infineon at a glance
Infineon at a glance FY19 revenue by segment FY19 revenue by product category Digital Security [EUR m] 3,503 Solutions (DSS) 8% 2,445 Power Manage- Automotive 1,418 ment & Multi- (ATV) market (PMM) 30% 44% 642 ATV IPC PMM DSS 18% Industrial Power Power embedded control RF & Sensors Control (IPC) Rev
Slide 4: Infineon is a long-standing member of Europe's leading sustainability indices
Infineon is a long-standing member of Europe's leading sustainability indices Infineon's most recent achievements › Feb 2019: Infineon is listed in › Sep 2019: Infineon is listed in › Mar 2019: Sustainalytics the Sustainability Yearbook the DJS Index for the 10th rated Infineon as an Out- for the 9t
Slide 5: Our strategy is targeted at value creation through sustainable organic growth
Our strategy is targeted at value creation through sustainable organic growth Focus Technology leadership System understanding › Focus on fastest growing › Leverage core competencies › Create value for customers segments of semi market in different end markets to through system under- › Tackle globa
Slide 6: Well diversified exposure to end-markets and applications provide resilient growth model
Well diversified exposure to end-markets and applications provide resilient growth model FY19 revenue of €8,029m by target application embedded security solutions (3%) smart card solutions (5%) powertrain excl. xEV (12%) other PMM (3%) xEV 7% industrial (11%) DSS 8% communications (1%) safety excl.
Slide 7: Tight customer relationships, based on system know-how and application understanding
Tight customer relationships, based on system know- how and application understanding ATV IPC PMM DSS EMS partners Distribution partners 2020-03-26 Copyright © Infineon Technologies AG 2020. All rights reserved. 7
Slide 8: Infineon gained market share in all target markets
Infineon gained market share in all target markets Automotive Power discretes semiconductors and modules Security ICs total market in 2018: $37.7bn total market in 2018: $21.0bn total market in 2018: $3.2bn NXP 12.0% Infineon 19.9% (+1.2-pt) NXP 24.8% Infineon 11.2% (+0.4-pt) ON Semi 8.9% Renesas 8.
Slide 9: Outlook for Q2 FY20 and FY20
Outlook for Q2 FY20 and FY20 Outlook Q2 FY20* Outlook FY20* (compared to Q1 FY20) Increase of 5% Increase of 5% Revenue +/- 2%-points +/- 2%-points Segment At the mid-point of the At the mid-point of the revenue guidance: revenue guidance: Result Margin ~14% ~16% Investments in FY20 ~€1.3bn** D&A in
Slide 10: Agenda
Agenda 1 Infineon at a glance 2 Planned acquisition of Cypress 3 Quarterly highlights 4 Automotive 5 Industrial Power Control 6 Power Management & Multimarket 7 Digital Security Solutions 8 Selected financial figures 2020-03-26 Copyright © Infineon Technologies AG 2020. All rights reserved. 10
Slide 11: The deal shapes a portfolio that perfectly links the real and the digital world
The deal shapes a portfolio that perfectly links the real and the digital world Linking the real and the digital world Battery-powered devices Industrial IoT Consumer IoT Connectivity Real-world Software Digital Drives applications Ecosystem world Power supplies 5G Automotive Infineon Cypress Sense
Slide 12: Infineon and Cypress can together offer full system solutions
Infineon and Cypress can together offer full system solutions Example: air-conditioning What makes system solution Indoor Unit Outdoor Unit attractive to customers? UART › Ease of design Connectivity MCU MCU WIFI / Connect Dual Motor + PFC  combined portfolio covers all Bluetooth Frontend relevant
Slide 13: Infineon and Cypress portfolios complement each other covering entire range of auto applications
Infineon and Cypress portfolios complement each other covering entire range of auto applications Full coverage of all application fields within automotive Benefits of combination Body Cluster/ Chassis Powertrain ADAS Infotainment Creating the #1 auto semi vendor Connectivity Complementary MCU NOR Fl
Slide 14: Expected cost synergies of ca. €180m p.a. by FY22
Expected cost synergies of ca. €180m p.a. by FY22 Revenue synergy potential > €1.5bn p.a. long-term Planned ramp up of cost synergies Planned ramp up of revenue synergies ca. €180m €1.5bn G&A €1bn S&M R&D COGS FY20e FY21e FY22e FY22e FY25e FY28e (A) (B) COGS (A) Near-term revenue synergy ramp up › P
Slide 15: Further improvement of through-cycle Target Operating Model
Further improvement of through-cycle Target Operating Model Current Integrated (as announced at CMD 2018) company* Revenue growth 9% 9%+ Segment result margin 17%+ 19% Investment-to-sales 15% 13% * Infineon financial performance to approach new targets as integration progresses 2020-03-26 Copyright
Slide 16: Financing: Major steps already accomplished
Financing: Major steps already accomplished STEP 1 Underwriting of full acquisition amount by 3 banks  STEP 2 Confirmation of investment grade rating by Standard & Poor's  STEP 3 Equity de-risking: Raise of €1.5bn via ABB  STEP 4 Successful syndication of acquisition facility to 20 national and i
Slide 17: Agenda
Agenda 1 Infineon at a glance 2 Planned acquisition of Cypress 3 Quarterly highlights 4 Automotive 5 Industrial Power Control 6 Power Management & Multimarket 7 Digital Security Solutions 8 Selected financial figures 2020-03-26 Copyright © Infineon Technologies AG 2020. All rights reserved. 17
Slide 18: Major European tier-1 awards Infineon with triple-digit million Euro design-win
Major European tier-1 awards Infineon with triple-digit million Euro design-win for 48 V mild-hybrid platform Electro-mobility: Infineon enforces footprint › Through deep understanding of our customer system requirements, we developed a new product combining the latest 80 V MOSFET technology and the
Slide 19: Defining the benchmark for MEMS microphones; new sealed dual-membrane technology
Defining the benchmark for MEMS microphones; Infineon’s new sealed dual-membrane technology › Unique sealed dual-membrane (SDM) XENSIV™ MEMS Sealing of capacitive area for noise free audio signal capturing microphone design boosts audio pick-up quality › Sealing of the capacitive area enables practi
Slide 20: Sweeping success of our XENSIV MEMS microphones
Sweeping success of our XENSIV™ MEMS microphones driven by unparalleled audio characteristics Infineon’s market share development in MEMS microphones 2 2018 MEMS die market share 37.0% total market: 4.6bn units 34.7% 33.5% 26.5% Knowles 42.8% Infineon 37.0% 1 Omron 5.2% 8.8% 5.2% NJRC 4.7% 3.5% MEMS
Slide 21: Clear trend towards string inverter-based set-ups in photovoltaic
While photovoltaic is partially in grid parity, there is a clear trend towards string inverter-based set-ups Market developments › Approaching grid parity through reduced capex and opex spending › Different inverter concepts allow for efficient and customized plant designs New set-up: string inverte
Slide 22: Infineon provides innovative SiC products to SMA
Infineon provides innovative SiC products to SMA, the European market leader of PV inverters Customer-specific SiC-based solution › Almost doubles the power density to 1.76 kW/kg › Efficiency of > 99% › Leads to reduced system complexity of the PV inverter resulting in easier maintenance and extende
Slide 23: Infineon's SiC business so far dominated by industrial; design-in momentum on automotive
Infineon’s SiC business so far dominated by industrial; design-in momentum clearly on automotive Strong growth in SiC business; very Cumulated SiC design-ins of ~€1.8bn* balanced product and customer portfolio [EUR m] CAGR(FY17-FY20): ~50% 60% – 80% automotive industrial › automotive: diodes, MOSFET
Slide 25: Infineon's position in the automotive semiconductor universe
Infineon's position in the automotive semiconductor universe Automotive semiconductors total market in 2018: $37.7bn NXP 12.0% Market share trend: Infineon Infineon 11.2% +0.4%-pt benefits disproportionately from the two mega trends Renesas 8.9% › electro-mobility: power, drivers, µC TI 8.2% › autom
Slide 27: xEV growth driven by EU emission regulation
xEV growth driven by EU emission regulation; CO2 reduction of 37.5% by 2030 vs 2021 CO2 emission development and regulations for main regions 200 Japan 2020: US 2020: CO2 emission values [g/km], normalized to NEDC 122 g CO2/km* 125 g CO2/km 150 No CO2 reduction since 2016! Necessity for significant
Slide 28: The incremental demand of power semiconductors is a significant opportunity
The incremental demand of power semiconductors is a significant opportunity 2019 average xEV semiconductor content by degree of electrification 48 V / MHEV FHEV / PHEV BEV $29 $785 $37 $775 $305 $350 $90 $0 $531 $19 $19 $62 $5 $62 $14 $14 $19 $355 $355 $355 $0 xEV others** xEV Power** Non PT* xEV µC
Slide 30: Vision Zero – AD requires failure-tolerant availability of the system
Vision Zero – AD requires failure-tolerant availability of the system in the environment, “better than a human” A failure-tolerant system with high availability relies on dependable key functionalities Driver Sense Interpret & decide Act Dependable Sensors Dependable Computing Dep. Actuators Camera
Slide 31: Increased sensor requirements drive the content in the next five years and beyond
Increased sensor requirements drive the content in the next five years and beyond More sensors required for any next level of automation NCAP 5 Star, AD L2 AD L2+/L3 AD L4/L5 Automatic emergency brake/ forward collision warning Application* Parking assist Valet parking Lane keep assist Highway assis
Slide 32: ADAS/AD semi growth driven by radar and camera sensor modules
ADAS/AD semi growth driven by radar and camera sensor modules over the next 5 years Average semiconductor content per car by level of automation at the given years NCAP 5 Star/AD L2 AD L2+ AD L3 AD L4/L5 L2 vehicles in 2020: ~6m L2+ in 2022: ~1m L3 in 2025: ~1.5m L4/L5 vehicles in 2030: ~4m L2+ in 2
Slide 34: Infineon's portfolio covers the entire range of power and frequency
Infineon's portfolio covers the entire range of power and frequency What is a power switch? How are power switches categorized? 10 MW When turned on power  current flows = When turned off 1 MW  current is blocked IGBT Module What counts? 100 kW › Losses in on-state (R(DS)on) SiC › Heat dissipation
Slide 35: Infineon's discrete power portfolio is basically separated by voltage classes
Infineon's discrete power portfolio* is basically separated by voltage classes Silicon-based power switches Compound semiconductors 6,500 V IPC territory 4,500 V SiC MOSFET IGBT 3,300 V (CoolSiC™) modules roadmap 1,700 V discrete IGBTs 1,200 V SiC MOSFET today IGBTs high-voltage MOSFETs 900 V (discr
Slide 36: Three strategic levers to outgrow the power semi market: core – adjacent – new
Three strategic levers to outgrow the power semi market: "core – adjacent – new"  Adjacent  Core Controller Gate driver switch application translates e.g. motion triggers low-power signal signal into control, power appropriate conversion gate input  Grow in adjacent fields  Strengthen core › Inv
Slide 37: Four key success factors: Infineon well positioned to defend its leadership in power semis also in SiC
Four key success factors: Infineon well positioned to defend its leadership in power semis also in SiC 1.) Substrate 2.) Device 3.) Module 4.) System planar trench Source Gate Source Gate G p+ n+ n+ p+ n+ n+ p p p G p+ p+ n n n+ n+ Courtesy: Kaco and pv magazine Drain Drain 2008 2011 2016 2019 100 k
Slide 39: Clear leader in discrete IGBTs and IGBT modules; IPMs strengthened
Clear leader in discrete IGBTs and IGBT modules; IPMs strengthened maintaining #3 Discrete IGBTs IPMs IGBT modules*** total market in 2018: $1.31bn total market in 2018: $1.68bn total market in 2018: $3.25bn Infineon 37.4% (+ 0.7-pt) Mitsubishi 32.3% Infineon 34.5% (+1.7-pt) ON Semi 9.6% ON Semi 18.
Slide 40: Extensive power module portfolio addresses the whole range of drives applications
Due to the extensive power module portfolio Infineon can address the whole range of drives applications Servo drives Low-power drives* Mid- and high-power drives 370 W 75 kW 370 W 500 kW 500 kW 10 MW › high positioning accuracy › performance and reliability › safety Requirements › fast response with
Slide 41: Infineon is a key player in the PV market
Infineon is a key player in the PV market providing solutions to the leading inverter manufacturers Infineon is present at top-10* Global installed PV capacity1 inverter manufacturers (2018)2 China CAGR(18-23): 9%  [GW] Rest of World 1 | Huawei 160 2 | Sungrow  3 | SMA  50.5 CAGR(18-23): 2% 4 | P
Slide 42: Infineon is the leading power semiconductor supplier for the wind turbine industry
Infineon is the leading power semiconductor supplier for the wind turbine industry Infineon is present at top-10* wind Global installed wind capacity1 turbine manufacturers (2018)2 China CAGR(18-23): 6% [GW] Rest of World 1 | Vestas  67.5 2 | Goldwind  3 | Siemens Gamesa  50.2 CAGR(18-23): 5% 26.
Slide 43: What comes next? Mid- to long-term structural growth opportunities
What comes next? Mid- to long-term structural growth opportunities Core Adjacent New area Courtesy: Shakti pumps Courtesy: Alstom new material solar pumps fuel cell Courtesy: Courtesy: McKinsey Siemens AG EV charging energy storage eMarine Courtesy: Lilium GmbH collaborative robots eDelivery vehicle
Slide 45: PMM's growth is built on many applications from different sectors
PMM's growth is built on many applications from different sectors in power and non-power Computing Industrial Consumer / Misc Communications › data center › power supplies › eBikes, eScooter › smartphones › PC, notebook › EV on-board charger › multicopter › mobile devices › peripherals › PV inverter
Slide 47: Infineon is the clear leader in MOSFETs; growth potential in power ICs
Infineon is the clear leader in MOSFETs; growth potential in power ICs Discrete Power MOSFET market Power IC market total market in 2018: $7.58bn total market in 2018: $25.62bn Infineon 27.7% (+0.7%-pt) TI 15.9% ON Semi 13.1% Infineon 8.3% (+0.8%-pt) STMicro 8.0% Qualcomm 7.3% Toshiba 7.0% ADI 7.1%
Slide 48: Technology leadership in MOSFETs and digital power
Technology leadership in MOSFETs and digital power: highest efficiency and power density Adjacent Core Controller Driver IC MOSFET triggers low-power translates signal into high- signal to switch on current gate input switches on, current flows Power management solutions reduce TCO More efficient se
Slide 49: Four interrelated trends drive power semiconductor BoM in battery-powered applications
Four interrelated trends drive power semiconductor BoM in battery-powered applications Interrelated trends for battery-powered applications  From corded to From brushed DC  Trend towards higher power  New applications cordless power to brushless DC and higher battery voltage with trend towards t
Slide 50: Transition from 3G/4G to 5G drives demand in power semis
Transition from 3G/4G to 5G drives demand in power semis for antennas and power supplies 5G base station New! Massive MIMO DC-DC (MOSFET, ICs) 5G mmWave antenna New! AC-DC, DC-DC (MOSFET, ICs) Cloud Computing AC-DC, DC-DC (MOSFET, ICs) New! Base station power supply AC-DC, DC-DC (MOSFET, ICs) Fog Co
Slide 51: What comes next? Mid- to long-term structural growth opportunities
What comes next? Mid- to long-term structural growth opportunities Core Adjacent New area Courtesy: Nissan 5G infrastructure on-board charger collaborative robots hyperscale AI data center power tools smart speaker new material home appliances class D audio 2020-03-26 Copyright © Infineon Technologi
Slide 53: RF and Sensing devices enable new services
RF and Sensing devices enable new services and will shape the way we live and work Various use cases are enabled by a small set of versatile core technologies Courtesy: BMW Augmented Reality Voice-controlled devices Gesture control Commercial and consumer multicopters Industrial robotics 2020-03-26
Slide 54: We focus on MEMS sensors and target to become the leader in 3D sensing and radar
We focus on MEMS sensors and target to become the leader in 3D sensing and radar Microphone Pressure Environmental 3D radar 3D ToF World Highest No Best-in-class Best-in-class smallest form energy distortions resolution resolution 6x6mm² factor efficiency Receive Measure clear audio Measure CO2 Biom
Slide 56: Continuous stream of new topics aging and exiting
Continuous stream of new topics aging and exiting maturity Emerging Growing Maturing Pay TV SIM Card  Smart card form factor  Embedded form factor Contact-based Payment TPM for Computing Government ID Embedded Secure Element (NFC) Transport Ticketing Authentication Contactless Payment eSIM for Aut
Slide 57: Infineon OPTIGA Trust M to improve the security and performance of connected devices
Infineon OPTIGA™ Trust M to improve the security and performance of connected devices New OPTIGA™ Trust M solution helps customers to enhance security of their devices › The single-chip solution securely stores unique device credentials and enables devices to connect to the cloud up to 10x faster th
Slide 58: Agenda
Agenda 1 Infineon at a glance 2 Planned acquisition of Cypress 3 Quarterly highlights 4 Automotive 5 Industrial Power Control 6 Power Management & Multimarket 7 Digital Security Solutions 8 Selected financial figures 2020-03-26 Copyright © Infineon Technologies AG 2020. All rights reserved. 58
Slide 59: Seasonal revenue decline in Q1 FY20
Seasonal revenue decline in Q1 FY20 Revenue development [EUR m] -3% › Challenging market environment -7% › Seasonality: revenue down -7% q-q 2,015 2,062 1,970 1,983 1,916 › Segment Result slightly better driven by one-offs as well as cost savings › Normalizing demand 39.5% › Channel inventories are
Slide 60: Q1 FY20 Division Performance
Q1 FY20 Division Performance ATV IPC PMM DSS [EUR m] [EUR m] [EUR m] [EUR m] -2% 888 893 -4% 875 846 829 617 639 591 598 593 -5% 352 347 357 362 334 +6% 25.1 22.3 24.2 23.9 24.6 19.6 19.3 15.4 16.3 18.6 149 164 167 162 158 13.8 12.8 11.0 8.7 8.1 13.6 13.9 117 112 98 78 69 67 55 155 132 145 153 146 1
Slide 61: Adjusted RoCE clearly above WACC
Adjusted RoCE clearly above WACC RoCE and adjusted RoCE 30% 20% 10% 0% FY16 FY17 FY18 FY19 Q1 FY19 Q2 Q3 Q4 Q1 FY20 Adjusted RoCE (excluding PPA, Deferred Tax Effects, RF power sale, Cypress) RoCE 2020-03-26 Copyright © Infineon Technologies AG 2020. All rights reserved. 61
Slide 62: Earnings-per-share and total cash return
Earnings-per-share and total cash return Development of earnings-per-share (EPS) from continuing operations [EUR cent] 22 24 22 24 23 EPS basic 20 19 16 17 13 EPS adjusted Q1 FY19 Q2 Q3 Q4 Q1 FY20 Total cash return to shareholders [EUR m] 2,450 308 336 › Policy of sustainable 283 305 248 dividend pa
Slide 63: Opex still within target range
Opex still within target range Selling, General & Administration Research & Development* [EUR m] 243 243 236 236 230 218 222 212 214 204 157 159 157 157 12.7% 151 12.0% 12.1% 11.9% 11.2% 11.1% 10.7% 10.6% 10.8% 10.6% 61 55 57 63 53 Q1 FY19 Q2 Q3 Q4 Q1 FY20 Q1 FY19 Q2 Q3 Q4 Q1 FY20 General & Administ
Slide 64: Inventory increase due to revaluation
Inventory increase due to revaluation Working capital* Inventories [EUR m] [EUR m] [days] 1,583 1,706 1,758 1,701 1,767 1,452 1,475 1,511 1,591 979 120 124 124 132 115 Q1 FY19 Q2 Q3 Q4 Q1 FY20 Q1 FY19 Q2 Q3 Q4 Q1 FY20 Inventories DIO* Trade receivables Trade payables [EUR m] [days] [EUR m] [days] 1,
Slide 65: Cycle management slows down investments
Cycle management slows down investments Investments* Depreciation & Amortization [EUR m] 1,451 1,254 ~1.3bn 1,022 ~1.0bn 945 ~60 833 861 87 785 826 812 760 140 103 129 114 18.1% 16.5% 15.4% 13.5% 14.5% 13.1% 12.8% 12.9% 11.5% 11.3% 11.8% 11.9% 646 693 683 758 858 ~940 FY15 FY16 FY17 FY18 FY19 FY20e
Slide 66: Increase in gross cash and net cash position driven by Cypress acquisition financing
Increase in gross cash and net cash position driven by Cypress acquisition financing activities Liquidity development [EUR m] 1,531 1,556 1,535 1,533 1,549 2,306 1,882 3,435 3,779 2,223 4,859 3,328 1,900 3328 773 333 Q1 Q2 Q3 Q4 Q1 FY19 FY20 Gross Cash Debt Net Cash › Q3 FY19: Includes the proceeds
Slide 67: Balanced maturity profile and investment grade rating (BBB) from S&P
Infineon has a balanced maturity profile and an investment grade rating (BBB)* from S&P Maturity profile [EUR m; US$ m; nominal values] €500 $350 $350 $235 €171 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 Campeon 8-year 10-year 12-year final re- Eurobond USPP USPP USPP payment Mar 2022 Notes N
Slide 68: Part of your life. Part of tomorrow.
Cinfineon Part of your life. Part of tomorrow.
Slide 69: Glossary (1 of 2)
Glossary (1 of 2) AC alternating current eCall emergency call AC-DC alternating current - direct current ECU electronic control unit AD automated driving EPS electric power steering ADAS advanced driver assistance system eSIM embedded subscriber identity module AEB automatic emergency braking eSIM e
Slide 70: Glossary (2 of 2)
Glossary (2 of 2) IPM intelligent power module PV photovoltaic iPol image processing line RF radio frequency IRF International Rectifier rhs right-hand scale Si silicon LSEV low-speed electric vehicle SiC silicon carbide LSPS LS Power Semitech Co. Ltd. SiGe silicon germanium µC microcontroller SMPS
Slide 71: Disclaimer
Disclaimer Disclaimer This presentation contains forward-looking statements about the business, financial condition and earnings performance of the Infineon Group. These statements are based on assumptions and projections resting upon currently available information and present estimates. They are s
Slide 72: Financial calendar
Financial calendar Date Location Event 5 May 2020* Q2 FY20 Results 7 May 2020 Call: IPC Business Update 27 May 2020 Milan Equita Conference 2020 3 - 4 Jun 2020 Berlin Deutsche Bank German, Swiss & Austrian Conference 9 – 10 Jun 2020 Paris Exane 22nd European CEO Conference 4 Aug 2020* Q3 FY20 Result
Slide 73: Notes
Notes Investments = 'Purchase of property, plant and equipment' + 'Purchase of intangible assets and other assets' incl. capitalization of R&D expenses Capital Employed = 'Total assets' – 'Cash and cash equivalents' – 'Financial investments' – 'Assets classified as held for sale – ('Total Current li
Slide 74: Most recent presentations
Most recent presentations ATV Call IPC Business Update Peter Schiefer Dr. Peter Wawer, Dr. Peter Friedrichs 8 October 2019 PCIM, Nuremberg, 7 May 2019 https://www.infineon.com/atv_call https://www.infineon.com/pcim_presentaion IFX Day 2018 Sustainability Report 2019 Capital Markets Day 23 November 2
Slide 75: Institutional Investor Relations contacts
Institutional Investor Relations contacts Alexander Foltin Corporate Vice President Finance, Treasury & Investor Relations +49 89 234-23766 alexander.foltin@infineon.com Joachim Binder Isabell Diel Senior Director Investor Relations Manager Investor Relations +49 89 234-25649 +49 89 234-38297 joachi

Infineon Technologies — Q1 FY2020 Earnings Presentation on 6ix

Infineon Technologies — Q1 FY2020 Earnings Presentation

Slide 1: First Quarter FY 2020 Quarterly Update

Slide 2: Agenda

Slide 3: Infineon at a glance

Slide 4: Infineon is a long-standing member of Europe's leading sustainability indices

Slide 5: Our strategy is targeted at value creation through sustainable organic growth

Slide 6: Well diversified exposure to end-markets and applications provide resilient growth model

Slide 7: Tight customer relationships, based on system know-how and application understanding

Slide 8: Infineon gained market share in all target markets

Slide 9: Outlook for Q2 FY20 and FY20

Slide 10: Agenda

Slide 11: The deal shapes a portfolio that perfectly links the real and the digital world

Slide 12: Infineon and Cypress can together offer full system solutions

Slide 13: Infineon and Cypress portfolios complement each other covering entire range of auto applications

Slide 14: Expected cost synergies of ca. €180m p.a. by FY22

Slide 15: Further improvement of through-cycle Target Operating Model

Slide 16: Financing: Major steps already accomplished

Slide 17: Agenda

Slide 18: Major European tier-1 awards Infineon with triple-digit million Euro design-win

Slide 19: Defining the benchmark for MEMS microphones; new sealed dual-membrane technology

Slide 20: Sweeping success of our XENSIV MEMS microphones

Slide 21: Clear trend towards string inverter-based set-ups in photovoltaic

Slide 22: Infineon provides innovative SiC products to SMA

Slide 23: Infineon's SiC business so far dominated by industrial; design-in momentum on automotive

Slide 24: Automotive

Slide 25: Infineon's position in the automotive semiconductor universe

Slide 26: Electro-mobility

Slide 27: xEV growth driven by EU emission regulation

Slide 28: The incremental demand of power semiconductors is a significant opportunity

Slide 29: Automated Driving

Slide 30: Vision Zero – AD requires failure-tolerant availability of the system

Slide 31: Increased sensor requirements drive the content in the next five years and beyond

Slide 32: ADAS/AD semi growth driven by radar and camera sensor modules

Slide 33: Infineon's Power Strategy

Slide 34: Infineon's portfolio covers the entire range of power and frequency

Slide 35: Infineon's discrete power portfolio is basically separated by voltage classes

Slide 36: Three strategic levers to outgrow the power semi market: core – adjacent – new

Slide 37: Four key success factors: Infineon well positioned to defend its leadership in power semis also in SiC

Slide 38: Industrial Power Control

Slide 39: Clear leader in discrete IGBTs and IGBT modules; IPMs strengthened

Slide 40: Extensive power module portfolio addresses the whole range of drives applications

Slide 41: Infineon is a key player in the PV market

Slide 42: Infineon is the leading power semiconductor supplier for the wind turbine industry

Slide 43: What comes next? Mid- to long-term structural growth opportunities

Slide 44: Power Management & Multimarket

Slide 45: PMM's growth is built on many applications from different sectors

Slide 46: PMM – Power

Slide 47: Infineon is the clear leader in MOSFETs; growth potential in power ICs

Slide 48: Technology leadership in MOSFETs and digital power

Slide 49: Four interrelated trends drive power semiconductor BoM in battery-powered applications

Slide 50: Transition from 3G/4G to 5G drives demand in power semis

Slide 51: What comes next? Mid- to long-term structural growth opportunities

Slide 52: PMM – RF and Sensing

Slide 53: RF and Sensing devices enable new services

Slide 54: We focus on MEMS sensors and target to become the leader in 3D sensing and radar

Slide 55: Digital Security Solutions

Slide 56: Continuous stream of new topics aging and exiting

Slide 57: Infineon OPTIGA Trust M to improve the security and performance of connected devices

Slide 58: Agenda

Slide 59: Seasonal revenue decline in Q1 FY20

Slide 60: Q1 FY20 Division Performance

Slide 61: Adjusted RoCE clearly above WACC

Slide 62: Earnings-per-share and total cash return

Slide 63: Opex still within target range

Slide 64: Inventory increase due to revaluation

Slide 65: Cycle management slows down investments

Slide 66: Increase in gross cash and net cash position driven by Cypress acquisition financing

Slide 67: Balanced maturity profile and investment grade rating (BBB) from S&P

Slide 68: Part of your life. Part of tomorrow.

Slide 69: Glossary (1 of 2)

Slide 70: Glossary (2 of 2)

Slide 71: Disclaimer

Slide 72: Financial calendar

Slide 73: Notes

Slide 74: Most recent presentations

Slide 75: Institutional Investor Relations contacts