Second Quarter FY 2021 Quarterly Update

Infineon Technologies AG Investor Relations

1 Infineon at a glance

Addressing long-term high-growth trends Illustrative aggregated FY20 revenue by segment

› IoT (edge comp., data center, 5G, sensing, connectivity) 14% › electro-mobility Automotive (ATV) Industrial Power Control (IPC) 43% › assisted driving, autonomous driving Power & Sensor Systems (PSS) 29%

› energy efficiency, renewables, EV infrastructure Connected Secure Systems (CSS) › security 14%

Financials Illustrative aggregated FY20 revenue by product category [EUR m] 8,567 9000 8,029 7,063 7,599 ~5% memories for 6,473 specific applications

6000 ~10% RF & sensors 17.1% 17.8% 16.4% 3000 15.2% 13.7% embedded control ~30% and connectivity 982 1,208 1,353 1,319 1,170

0 ~55% power semi- FY16 FY17 FY18 FY19 FY20 conductors Revenue Segment Result Margin of total revenue ATV IPC PSS CSS

Illustrative aggregated FY20 revenue of ~€9,600m by target application

industrial and consumer IoT; 10% powertrain ICE; 8% xEV (incl. MHEV); 5% payment, identification, ticketing; 4% other PSS; 2% CSS safety excl. ADAS; 6% industrial; 7% 14% ADAS; 4% ATV consumer; 6% PSS 43% 29% comfort, premium; 12% smartphones; 5% IPC communications; 3% 14% infotainment; 2% computing; 6% other ATV; 6% other IPC; 1% drives; 4% power infrastructure; 1% transportation; 2% renewables; 4% home appliances; 2%

Semiconductor suppliers Power discretes and modules MCU suppliers 2020 total market: $473bn1) 2019 total market: $21.0bn2) 2020 total market: $17.3bn1)

Intel 16.1% Infineon 19.0% Renesas 17.1% Samsung 12.0% ON Semi 8.4% NXP 16.7% SK Hynix 5.6% STMicro 5.8% Infineon 14.6% Micron 4.7% Mitsubishi 5.5% STMicro 14.5% Qualcomm 4.1% Toshiba 4.5% Microchip 12.7% Broadcom 3.8% Vishay 3.8% Texas Instr. 7.3% Texas Instr. 3.0% Fuji Electric 3.7% Nuvoton 2.3% Nvidia 2.8% Renesas* 2.8% Samsung 1.4% Infineon 2.4% ROHM 2.4% Toshiba 1.2% MediaTek 2.4% Nexperia 2.4% Silicon Labs 1.1%

* Renesas acquired Integrated Device Technology in March 2019. Both companies were combined as Renesas in the 2019 ranking. 1) Based on or includes research from Omdia: Annual 2001-2020 Semiconductor Market Share Competitive Landscaping Tool – Q4 2020. March 2021. 2) Based on or includes research from Omdia: Power Semiconductor Market Share Database – 2020. September 2020. Results are not an endorsement of Infineon Technologies AG. Any reliance on these results is at the third party’s own risk.

Coin cell-powered devices Battery-powered devices Information and data Power supplies about the real world

Industrial IoT Connectivity

Real-world Software Digital Drives applications Ecosystem world

Smart Home Value addition and Consumer IoT optimized use of resources

5G Automotive

Sense: sensors Compute: microcontrollers, memories Actuate: power semiconductors Connectivity: Wi-Fi, Bluetooth, USB

Outlook Q3 FY21* Outlook FY21*

~ €11.0bn +/- 3% Revenue €2.6bn – €2.9bn (prev.: ~ €10.8bn +/- 5%)

At the mid-point of the revenue guidance: At the mid-point of the revenue guidance: Segment Result Margin ~ 18% ~ 18% (prev.: ~17.5%)

Investments in FY21 ~ €1.6bn

D&A in FY21 €1.5bn – €1.6bn**

Free cash flow in FY21 > €1.2bn (prev.: > €800m)

* Based on an assumed average exchange rate of $1.20 for €1.00 ** Including the effects of the purchase price allocation for Cypress and, to a lesser extent, International Rectifier

Planned ramp-up of cost synergies Planned ramp-up of revenue synergies

€180m €1.5bn

P2S for G&A long-term revenue synergies €1bn

S&M

Near-term R&D revenue synergies: improved customer access, COGS cross-selling opportunities

end FY20 mid FY21e mid FY22e mid FY23e* FY22e FY25e FY28e

Expected integration and restructuring costs equivalent to ~1x cost synergies one-off over time. * Expected cost synergies of €180m p.a. gradually ramping up over approximately three years after closing (16 April 2020).

Target Operating Model

Infineon financial performance to approach targets as Cypress integration progresses

Revenue growth 9%+

Segment Result Margin 19%

Investment-to-sales 13%

2021-05-04 Copyright © Infineon Technologies AG 2021. All rights reserved. 8 Design-win at an Asian OEM: Infineon semiconductors worth more than €500 in an upper mid-range EV platform with SAE L2 automation

Category Major products Main applications (comprising 14x AURIX™ )

ADAS remote sensor mid-range parking front camera vehicle fusion radar system assistance

integrated full AURIX™ 77 GHz radar ABS HVAC PTC heater central redundant gateway unit EPS comfort, premium, standard safety, audio, integrated infotainment black box video, oil pump interior lamp electronic system navigation brake

smart high-side power switch drive electronic seat heater water pump charge lamp video record gear shifter EV drivetrain system

SiC-based OBC / Low high-voltage inverter gate main DC-DC vehicle BMS board control unit CoolSiC™ MOSFET Module inverter converter

2021-05-04 Copyright © Infineon Technologies AG 2021. All rights reserved. 9 Infineon introduced industry’s first AEC-Q103-qualified high- performance XENSIV™ MEMS microphone for automotive applications

Infineon expands the application range of its MEMS microphones into automotive

› The newly launched IM67D130A MEMS XENSIV™ IM67D130A microphone enables the use of sound as a MEMS microphone complementary sensor for – improved speech recognition – advanced driver assistance systems › The outstanding acoustic characteristics allow the microphone to capture distortion-free audio signals in loud environments for – interior applications: hands-free systems, emergency calls, in-cabin communication, active noise cancellation – exterior applications: siren detection, road condition recognition

Next-generation accelerator boards are driving the need for ultra-high density and robust power conversion solutions › Exponential increase in compute power driven by AI training and high-performance compute (HPC) systems resulting in power consumption of > 1 kW per board

› 15% to 25% higher DC-DC power semiconductor content with every xPU generation R&D › Infineon’s robust and high-efficiency power management solutions are optimized to support high-performance xPUs, ASICs andCOGS SoCs with superior power density Courtesy: a leading CPU, GPU, and AI accelerator manufacturer Infineon’s high-density Smart Power Stages › Infineon high-density 90 A Smart Power Stage enable system designs with highest power in 4 mm x 6 mm package density and quality

Key facts Example application: presence detection › Infineon offers complete turn-key solution comprising 20 mm of sensor, MCU and software libraries (apps, SDKs) XENSIV™ 60 GHz radar › BLE functionality monolithically integrated on MCU › Radar sensor remotely controlled via smartphone 15 mm app

› IoT target applications: entrance control or presence person sitting still PSoC™ 6 MCU (static humans; no motion) detection for smart home and smart building → lamp remains on no one in the room › Radar solutions are anonymous and therefore → lamp off person walks in respecting privacy („macro motion“ detection) → lamp turns on › First orders for presence detection received from several Asian customers Advantages of radar over passive infrared › optionally: radar solution can perfectly be combined with Infineon’s › super compact design; smaller system sizes XENSIV™ PAS CO2 sensor › determination of person’s direction, speed, distance for air quality monitoring › programmable; can flexibly be adapted to the target application › higher accuracy; more precise measurements of detected objects › depending on the antenna configuration: position of a moving object

Key facts › Infineon is expanding its AIROC™ wireless portfolio of high- performance, reliable and secured offerings with combined Wi-Fi 6/6E and Bluetooth® 5.2 combo capabilities › Key advantages of the new solution include: – Doubled wireless coverage range compared to Wi-Fi 4 and 5 – 40% more coverage than typical Wi-Fi 6/6E solutions – Over 20% power savings, enabling longer battery life – Improved connection robustness with enhanced interference mitigation – Multi-layer security protections enabling a higher level of security for IoT applications Selected target applications

streaming devices game consoles smart speakers infotainment

We contribute a CO2 reduction of more than 54 million tons

* The increase in the burden of CO2 equivalents can mainly be explained by including manufacturing service providers for the first time into the calculation

Our net ecologic CO2 benefit is equal to…

The average annual 50,000 fully occupied flights of The savings of a 1,874 km ² electricity consumption of about an Airbus A380 from Munich to photovoltaic powerplant.3) 90 million people living in Singapore.5) Europe.4)

For explanatory notes see appendix

70% CO2 emissions reduction target in 2025 (scope 1 and 2 emissions)

1. Avoiding direct emissions and further reducing energy consumption 2. Purchasing green electricity with guarantees of origin for unavoidable emissions

3. Compensate the smallest part by certificates that combine development support and CO2 abatement

Abatement of Perfluorinated Compounds (PFC’s)1) is one of the most important measures avoiding direct emissions.

Normalized PFC emissions rate in tons of CO2 equivalent per square meter wafer

Infineon

WSC 2020 target

2016 2017 2018 2019 2020 Historically, Infineon's normalized emission rate has been below WSC 2020 target of 2.2 in tons of CO2 per square wafer

1) Namely perfluorinated and polyfluorinated carbon compounds, sulfur hexafluoride (SF6) and nitrogen trifluoride (NF3)

Rating/Score Scale Date CCC to AA 02/2021 MSCI ESG AAA B climate scoring F to A 12/2020 CDP B water scoring

Ecovadis 98th percentile “Gold” award 0 to 100 11/2020 81 Dow Jones Sustain- 0 to 100 11/2020 Dow Jones Sustainability Index ability™ World and Europe Index listing

Ethibel Sustainability Index Index member - 05/2020 Excelence Europe” B- D- to A+ 01/2021 ISS ESG Corporate Rating Prime Status

FTSE4Good Index Index member - 07/2020 Euronext Vigeo Eurozone 120 Index Indices member - 06/2020 Euronext Vigeo Europe 120 Index Sustainalytics 77 “Outperformer” level 0 to 100 06/2020

ATV revenue and Segment Result Margin FY20 revenue split by product group

[EUR m] memories CAGR(FY16-FY20): 7.5% MCUs 4.000 3.284 3.503 3.542 25% 3.500 2.989 2.369 3.000 2.656 2.500 15% 16% 2.000 14% 14% 16% 1.500 12% 5% 1.000 4% 500 sensors 0 -5% FY16 FY17 FY18 FY19 FY20 H1 FY21 power (incl. SiC) ATV revenue ATV Segment Result Margin

Key customers

Applications Market Outlook for CY21

› Y-Y recovery with unit growth at mid-teens % › Unit growth momentum in CY21 hindered by semiconductor shortages; the shortage is expected to last a few more months › Continued uncertainties related to market development mainly due to COVID-19 pandemic

› Incentives and CO2 regulations should keep demand high › Improving consumer sentiment around sustainability theme › Steady investments in EV charging infrastructure further lowers reservation towards EVs

› Further increase in L1 and L2 penetration expected › L2+ shipments still at the inital phase

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 NOR Flash memory ICs Renesas 8.5% › #2 position in sensors TI 8.3% › Solid #3 position in microcontrollers due to strong demand in STMicro 7.5% AURIX™, TRAVEO™ and PSoC™ families

Sensors Microcontrollers Power semiconductors

Bosch 22.2% Renesas 26.7% Infineon 30.2% Infineon 15.5% NXP 26.3% STMicro 16.3% ON Semi 10.0% Infineon 16.9% TI 10.3% Melexis 8.6% TI 9.8% ON Semi 7.1% NXP 7.3% Microchip 6.9% Rohm 5.9%

Strategy Analytics: Automotive Semiconductor Vendor Market Shares. April 2021.

NIO: EC6 Scalable Infineon HybridPACK™ Drive portfolio XPeng: P5

GAC Trumpchi: Aion S EV › > 20 BEV platforms in production with Infineon SAIC: MG EZS EV HybridPACK™ Drive › > 1m pieces shipped with an unparalleled quality performance › Available with Si and SiC chips › Scalable module portfolio meets cost- performance sweet spots between 120 kW and 250 kW › Optimized versions for 400 V and 800V battery voltage

2020 average xEV semiconductor content by degree of electrification

48 V / Mild Hybrids Full & Plug-in Hybrids and Battery Electric Vehicles

$834 $330 $32

$90 $0 $572 $61 $7 $17 $14 $23 $396 $396 $38

Non- ICE xEV xEV xEV xEV Total Non- ICE xEV xEV xEV xEV Total Power- Power- Sensors MCUs Power** Others** semi Power- Power- Sensors MCUs Power** Others** semi train* train BoM train* train BoM 2020 2.3m vehicles 6.1m vehicles 2022e 5.8m vehicles 12.2m vehicles 2025e 18.8m vehicles 21.0m vehicles 2030e 27.3m vehicles 32.0m vehicles

* Non-Powertrain: average semiconductor content in body, chassis, safety and infotainment application segments ** "power" includes voltage regulators and ASIC; "others" include opto, small signal discretes, memory Sources: Infineon; based on or includes content supplied by IHS Markit, Automotive Group: Alternative Propulsion Forecast. July 2020; Strategy Analytics: Automotive Semiconductor Demand Forecast 2018-2027 and Automotive Sensor Demand 2018-2027. July 2020

Incremental average semiconductor content per car by level of automation at the given years

Level 2 Level 2+ Level 4/L5 L2 vehicles in 2020: ~5m L2+ in 2025: ~2.5m L4/L5 vehicles in 2030: ~2.5m

Bill-of-materials $160 - $180 $280 - $350 $1,150 - $1,250

Camera modules 40 - 50% of BoM 40 - 50% of BoM 15 - 20% of BoM

Radar & Lidar modules ~30% ~30% 30 - 45%

Sensor fusion 20 - 30% 20 - 30% 30 - 45%

Others (e.g. actuators) 5 - 10% 5 - 10% 5 - 10%

BoM contains all type of semiconductors (e.g. radar modules include µC); sensor fusion does not include memory. BoM are projected figures for the respective time frame Sources: Strategy Analytics: Automated Driving Semiconductor Market Estimate. August 2020; Infineon.

2021-05-04 Copyright © Infineon Technologies AG 2021. All rights reserved. 26 The Infineon AURIX™ µC family has become the first-choice automotive architecture for high-growth and safety-critical applications

Infineon AURIX™ revenue development over time FY10 FY20e FY25e

CAGR(FY10-FY25)= 5.7% CAGR(FY20-FY25)= 34%

[indexed: FY10 = 100]

TAM: TAM: €1.6bn €4.8bn

CAGR(FY20-FY25)= 50% CAGR(FY10-FY25)= 11.5%

powertrain classical safety ADAS/AD domain and zone control › ICE engine management › power steering › camera host control › drive domain › ICE transmission › braking › sensor fusion host control › body & convenience domain › xEV motor control › airbag › radar signal pre-processing › zone control

Sources: Infineon; Strategy Analytics: Automotive Semiconductor Demand Forecast. February 2020. Covering Infineon target markets; excl. body, comfort, infotainment.

OEM platform #1: › 14 MCUs (+ NOR Flash + Wi-Fi) OEM platform #2: › 20 MCUs › start of production: end of CY20 › start of production: CY22

Engine control Braking AD fusion Instrument Engine Braking AD fusion Cluster TFT module standard cluster management standard module AURIX™ TC38x AURIX™ TC39x AURIX™ TC39x NOR Flash AURIX™ TC38x AURIX™ TC38x AURIX™ TC39x FCR4 MB9DF125 S26KS512 Drivetrain control Airbag AD fusion Diesel engine Airbag AD fusion 8” rear-seat module high-end Infotainment management high-end entertainment module AURIX™ TC23x AURIX™ TC23x AURIX™ TC39x AURIX™ TC39x AURIX™ TC37x AURIX™ TC39x TrueTouch TMA78 89359 Transmission Electric power Central AD (Wi-Fi / Bluetooth) Transmission Electric power Front camera 10” navigation control module steering decision module control module steering module AURIX™ TC27x AURIX™ TC27x AURIX™ TC39x Central AD AURIX™ TC38x AURIX™ TC36x AURIX™ TC37x TrueTouch TMA1036 module Automatic gear Automatic sway Secure gateway NOR Flash Inverter PHEV Suspension CVC Radar domain Climate, shifter module bar module S70FL01G processing gearshift MMI S25FL512 AURIX™ TC23x AURIX™ TC23x AURIX™ TC39x S25FS512 AURIX™ TC38x AURIX™ TC38x AURIX™ TC39x FR CY91xxx

Electronic slip Map driver Door module Alarm system Digital instrument Head light differential assistance module cluster module AURIX™ TC23x AURIX™ TC39x FR MB91520 FR MB91F520 Traveo I S6J332 FR MB91F525

Infineon heritage Cypress heritage

What is a power switch? How are power switches categorized?

10 MW

When turned on power → current flows = 1 MW When turned off IGBT → current is blocked Module SiC Module

100 kW

What counts? › Losses in on-state (R ) (DS)on 10 kW › Heat dissipation SiC MOSFET › Max. switching frequency Discrete › Die size IGBT 1 kW Package size (form factor) › GaN HEMT MOSFET 100 W 10 Hz 1 kHz 1 MHz frequency

Silicon-based power switches Compound semiconductors

6,500 V

4,500 V CoolSiC™ MOSFET IGBT 3,300 V roadmap modules 1,700 V IPCterritory discrete IGBTs 1,200 V SiC MOSFET today IGBTs (discretes, modules) (CoolSiC™) high-voltage MOSFETs 900 V (CoolMOS™) 600 V 400 V GaN HEMT today (CoolGaN™) mid-voltage MOSFETs 150 V

(OptiMOS™) 100 V CoolGaN™ roadmap ATV territory ATV

80 V PSS territory PSS low-voltage MOSFETs 40 V MOSFETs (OptiMOS™) 20 V (OptiMOS™) * excluding drivers and control ICs

Industrial and automotive applications driving the growth

[EUR m] CAGR(FY17-FY21e): ~55% 200 ~100%

150

100 ~200 different CoolSiC™ products

50 ~3,000 total active customers including distribution

0 FY17 FY18 FY19 FY20 FY21e

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 Module

voltages

600 V

650 V

1200 V

1700 V

Continuous expansion of portfolio

Current status of SiC device manufacturing Phase 1: boule splitting in volume prod. starting FY22

The supplier cuts the boule into 350 µm thick wafers thereby losing almost half of We source boules and use our splitting technology to cut it into wafers. The the material as kerf. The resulting wafers are processed and ground to ~100 µm process is kerf-free and therefore losses are minimal. The resulting 350 µm thick before finishing them. Thereby losing another half of the material. wafers are processed according to the current process flow. → ~¾ of raw material lost → Raw material losses reduced by half

Supply chain Infineon manufacturing Supply chain InfineonInfineon manufacturing production

Wire sawing Epitaxy Frontside Grinding Boule Boule splitting Epitaxy Frontside processing processing

Wafer 350 µm Wafer 100 µm Wafer 350 µm

Boule Backside Wafer dicing Grinding Backside Wafer dicing processing processing

Wafer 100 µm

The kerf and grinding consume ~75% of the raw material ~2x number of wafers per boule compared to wire sawing

Phase 2: wafer twinning Phase 3: advanced boule splitting

The starting material are either wafer from the phase 1 boule splitting The advanced boule splitting results in thin wafers that can be processed directly. process or sourced wafer. The 350 µm thick wafer is processed and instead of grinding it down to 100 µm the lower part is split off and processed again. → Combining boule and wafer twinning → minimal raw material losses → Most efficient process with minimal raw material losses

Infineon manufacturing Supply chain Infineon manufacturing

Wafer 350 µm Epitaxy Frontside Wafer twinning Boule Boule splitting Epitaxy Front/Backside processing processing

Thin wafer

Upper half Lower half

Backside Wafer dicing Epitaxy Front/Backside Wafer dicing Wafer dicing processing processing

~2x – 4x number of wafers per boule ~4x number of wafers per boule

1st Gen. with lowest losses is the leading technology today 2nd Gen. will expand the lead

9 nd B Gen 2 Planar C Gen 1 Planar › 2 Gen. CoolSiC™ Trench 8 MOSFET is in advanced D Gen 1 Planar *nC] development phase Ω 7 A Gen 1 Planar › Enhanced power handling capability

6 by 25% – 30% losses 5 F Planar › Enhanced safe operating area Planar E Planar A Gen 2 Planar without compromising quality lower 4 B Gen 3 Trench Trench › Enabling SiC in further high volume 3 applications FoM = RDS(on)*Qg [ RDS(on)*Qg = FoM Infineon Gen 1 Trench 2 20 40 60 80 100 Current (A) at 25 °C 2nd Gen. CoolSiC™ Trench MOSFET will significantly enlarge the market size for SiC MOSFETs SystemPlus Consulting: SiC Transistor Comparison 2020. November 2020

IPC revenue and Segment Result Margin FY20 revenue split by product group

[EUR m] CAGR(FY16-FY20): 7.0% SiC discrete IGBTs

1.600 1.323 1.418 1.406 25% 1.400 1.206 723 1.200 1.072 15% driver ICs 1.000 19% 18% 18% IGBT modules 800 15% 17% 12% 600 5% 400 IPMs 200 0 -5% FY16 FY17 FY18 FY19 FY20 H1 FY21 IPC revenue IPC Segment Result Margin

Key customers

Applications Market Outlook for CY21 (% of FY20 segment revenue)

Automation and Drives ~30% › Industrial Drives recovering in high single digits with demand growing mainly in GC region

Renewables › Wind: installations forecasted to increase to all-time-high ~24% › PV: market forecast continuously corrected upward

~16% › Catch-up of delayed purchases and energy efficiency incentive programs will drive growth

Transportation ~13% › Diminished COVID-related travel activities caused further push-out of construction of passenger trains and e-Busses

Power Infrastructure ~9% › Growing demand in EV charging infrastructure, Industrial UPS and energy storage systems › Delays in Transmission & Distribution projects

Others 8% › Growth driven by general market recovery

Discrete IGBTs IPMs IGBT modules1) 2019 total market: $1.44bn 2019 total market: $1.59bn 2019 total market: $3.31bn

Infineon 32.5% Mitsubishi 32.7% Infineon 35.6%

Fuji Electric 11.7% ON Semi 17.9% Mitsubishi 11.9%

ON Semi 7.9% Infineon 11.5% Fuji Electric 10.5%

Toshiba 6.1% Fuji Electric 7.8% Semikron 7.3%

Mitsubishi 5.7% Semikron 7.0% Vincotech 3.5%

STMicro 5.4% ROHM Semi 4.2% Hitachi 3.1%

Littelfuse 4.7% Sanken Electric 2.9% Danfoss 2.5%

Renesas 4.5% STMicro 2.4% Starpower 2.5%

MagnaChip 3.7% Hangzhou Silan 1.1% Toshiba 2.4%

Hangzhou Silan 2.2% Jilin Sino-Micro 0.8% ABB Semi 1.8%

1) Including standard (non-integrated) IGBT modules and power integrated modules (PIMs) / converter inverter brake (CIB) modules Based on or includes research from Omdia: Power Semiconductor Market Share Database 2020. September 2020

Onshore Offshore HVDC**

› Application: Full Converter & Partial/DFIG* › Application: Full Converter based wind turbine › Application: HVDC - VSC converter based wind turbine › Output: 3 MW – 14 MW › Output: 100 MW – 4 GW › Output: 1 MW – 6 MW › Power semi content: €3,250 - €3,500 per MW › Power semi content: €5,200 - €18,000 per MW › Power semi content: €2,000 - €3,250 per MW String inverter Central inverter

› Application: residential, commercial and utility- › Application: utility-scale PV plants scale PV plants › Output: 600 kW – 1,250 kW › Output: 1 kW – 200 kW › Power semi content: €2,000 – €3,000 per MW › Power semi content: €2,500 – €5,000 per MW

*DFIG – Doubly fed induction generator ** HVDC - High-voltage direct current transmission

Average annual solar PV and wind capacity additions* All leading renewable energy players are our customers*

› Reduces System Size › Increased lifetime of IGBT Modules › Reduced power losses up to 50% compared to a › Highest reliability for remote places traditional IGBT

Battery storage capacity and share of variable renewables1) Key drivers

40 › Decentralization of power 2030 generation European Union 2025 India › Peak shaving of energy 30 China 2020 generation and energy United States consumption 20 › Limited capacity and flexibility of today's grids

10 › Reduction of standby cost of

fossil power plants Battery storage capacity (GW) capacity storageBattery 0 ~€3,200 of power semiconductor 0% 10% 20% 30% 40% content per MW of installed energy storage capacity2) Share of variable renewables (PV and wind)

1) International Energy Agency: World Energy Outlook 2020, p. 248; variable renewables consist of solar and wind energy. 2) Infineon estimate

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 vehicles eAviation

PSS revenue and Segment Result Margin FY20 revenue split by product group

[EUR m] other (incl. HiRel) CAGR(FY16-FY20): 6.7%

2.800 2.650 40% 2.318 2.445 MOSFETs 2.300 2.041 2.148 (incl. SiC, GaN) 30% 1.800 23% 24% 24% 1.566 17% 20% 1.300 24% 20% RF & sensors 800 10% 300

-200 0% FY16 FY17 FY18 FY19 FY20 H1 FY21

PSS revenue PSS Segment Result Margin power ICs Key customers

Applications Market Outlook for CY21 (% of FY20 segment revenue)

Computing › Acceleration towards cloud computing to continue ~20% › Pandemic-driven stay-at-home and WFH effects continue to favor notebook sales

Communication › In general, long-term drivers due to 5G still intact ~9% › However, trade tensions generate some uncertainty around speed of roll-out in China and other regions

Smartphones ~19% › Strong rebound expected driven mainly by economic recovery and migration towards 5G phones

Consumer ~20% › Consumer electronics, including e.g. game consoles, clear beneficiaries from stay-at-home

Industrial › Automotive and other industrial segments show strong recovery. However, automotive production ~23% has taken hits from chip shortages › Battery-powered tools continue to show strong momentum * does not sum up to 100% due to other applications not shown here

Computing Communications Smartphones Consumer Industrial

› data center › base stations › smartphones › eBikes, eScooter › power supplies › enterprise server › backhaul cellular › mobile devices › multicopter › EV on-board charger › PC, notebook infrastructure › wearables › LSEV › 5G massive MIMO › charging › peripherals › USB Type-C, › gaming infrastructure › telecommunication USB Type-C PD › chargers and › TV sets › PV inverter servers adapters › smart home › power tools › lighting › Industry 4.0 › space

Discrete Power MOSFETs Power ICs 2019 total market: $8.10bn 2019 total market: $24.4bn

Infineon 24.6% Texas Instruments 16.0% ON Semi 12.8% Infineon 7.7% STMicro 9.5% Analog Devices 7.2% Toshiba 7.3% Qualcomm 6.3% Renesas* 5.6% STMicro 5.6% Vishay 5.0% ON Semi 5.0% Alpha and Omega 4.5% Dialog 3.9% Nexperia 4.1% NXP 3.8% China Resources 3.0% Renesas* 3.5% MagnaChip 1.8% Maxim 3.4%

* Renesas acquired Integrated Device Technology in March 2019. Both companies were combined as Renesas in 2019. Discrete Power MOSFET market includes automotive MOSFETs, protected MOSFETs, SiC MOSFETs and GaN power transistors. Power IC market includes automotive power ICs. Based on or includes research from Omdia: Power Semiconductor Market Share Database 2020. September 2020.

› driver #1: massive growth of data 5G base station 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 station power supply content per radio board: from ~$25 AC-DC, DC-DC (MOSFET, ICs) Fog Computing AC-DC, DC-DC (MOSFET, ICs) for MIMO antenna to ~$100 for massive MIMO antenna array

› driver #4: fog computing data center as a completely new market

USB Type-C becomes de-facto interface form factor Infineon USB business split by appl.

[FY20]

Smartphone & Others tablet

Automotive Network & PC, storage Nearmonitor,-term revenueprinter Cables & dongles synergies: improved Charger & adapter customer access, COGS cross-selling › Infineon USB business dominated by USB Type-C and USB Type-C PD opportunities › USB Type-C PD in automotive is a nascent segment with good growth opportunities › USB Type-C PD offers revenue synergies for Infineon in AC-DC chargers and adapters

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

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 14.0 x 13.6 x 7.5 mm³ factor

Presence Face ID Low power detection/ (biometrics), consumption Measure CO2 Vital Sensing VR/AR

Main applications

› Smartphone: world- › Smartphone › Automotive › Heating, ventilation, air facing and user-facing › True wireless stereo › Smart home conditioning (HVAC) › Robotics headsets › TV › Air purifier › Automotive in-cabin › Smart speaker › Smart thermostat › Security camera sensing › Laptop & Tablet › CO /virus risk reduction › Smart building › Payment terminals 2

MEMS microphone market Radar IC market (24 GHz and 60 GHz only)

[EUR m] [EUR m] 1.841 1.920 601 1.494 1.641 1.251 467 347 219 154

FY 2021 2022 2023 2024 2025 FY 2021 2022 2023 2024 2025

Source: Infineon estimates Source: Infineon estimates

3D ToF image sensor market Environmental sensor market*

[EUR m] [EUR m] 700 1475 559 1282 456 908 361 285 476 171

FY 2021 2022 2023 2024 2025 FY 2021 2022 2023 2024 2025 * Infineon is addressing smart building, smart home, smart appliances, consumer IoT Source: Infineon estimates devices and automotive. Source: Infineon estimates

MEMS microphone Radar ICs (24 GHz and 60 GHz only)

› Strong first quarter and bounce back of the smartphone › Home appliance will drive 60 GHz radar growth in the market in CY 2021 contribute to good MEMS microphone consumer market (smart lamp, speaker, thermostat a.o.). demand growth. › 60 GHz radar successfully launched as replacement for › Hearables are also a major growth driver. Popular passive-infrared approach getting traction in the market. features like active noise cancellation or transparent hearing require 4 to 9 microphones. Traditional wired › New applications like In-cabin-monitoring systems and headsets included only 1 microphone. smart trunk opener will fuel strong growth in automotive.

3D ToF image sensor Environmental sensors

› Trend for indoor air quality measurement due to health, › Consumer market in non-phone category is showing comfort and energy saving reasons. increasing interest for implementation of 3D ToF › XENSIV™ PAS CO2 sensor supports reducing the risk of cameras in latest electronic equipment. This is driven virus transmission by ensuring better and safe indoor air by applications like service robots, multicopter and quality. AR headsets for education, leisure or medical. › Smart home & smart building market are showing huge interest in usage of CO2 sensors in different applications.

2021-05-04 Copyright © Infineon Technologies AG 2021. All rights reserved. 57 Sweeping success of our XENSIV™ MEMS microphones driven by unparalleled audio characteristics catapulted Infineon to new #1

Infineon’s market share development in MEMS microphones (by units)

43.5% 2019 MEMS die market share 34.7% 36.5% total market: 5.4bn units 26.5% Infineon 43.5% Knowles 39.8% 8.8% 3.5% 5.2% MEMSensing 5.9% Omron 4.1% 2006 2008 2010 2012 2014 2016 2018 NJRC 2.5%

Based on or includes research from Omdia: MEMS Microphones Dice Market Shares 2020. October 2020 Technological progression of Infineon XENSIV™ MEMS microphones

1 Single-back plate 2 Dual-back plate 3 Sealed dual-membrane

SNR = 62 – 65 dB(A) SNR = 65 – 69 dB(A) SNR = 68 – 75 dB(A)

› Enables functionalities like real-time augmented reality, long range Characteristics: scanning, small object reconstruction, fast low-power autofocus and › Long range up to 10 meters picture segmentation. › High resolution up to 40k › Serves applications like gaming, virtual e-Commerce, 3D online depth points education, facial recognition. › Lowest power, reduction of 40% at the imager Adaptive resolution depending on distance › Accurate and robust depth data under all light conditions › Smallest 3D camera; 35% smaller footprint › Lowest system BoM due to 40k 10k 2.7k 0.6k depth points high integrated CMOS image sensor and Infineon VCSEL driver component

5m 7m 10m

Photoacoustic spectroscopy (PAS) technology based on Infineon‘s high-sensitivity MEMS microphone

› Infineon XENSIV™ PAS CO2 sensor enables highly-precise, cost-effective and space saving CO2 measuring › The technology offers an exceptionally small form factor (14 mm x 13.8 mm x 7.5 mm) that is 4x smaller and 3x lighter (2 grams) than the typical NDIR (non-dispersive infrared) sensor, allowing for more than 75% space savings in customer systems › The SMD package ensures compatibility with high-volume manufacturing standards, enabling cost-effective, fast assembly and system integration › Advanced compensation and configuration algorithms enable a plug-&-play sensor and fast design-to-market

All XENSIV™ PAS CO2 sensor components are developed in-house, enabling full control of the system

CSS revenue and Segment Result Margin FY20 revenue split by product group

[EUR m] CAGR(FY16-FY20): 7.9% MCUs

1.000 953 25% 703 708 664 800 642 664 15% 600 19% security ICs 18% 16% 400 12% 13% 11% 5% 200

0 -5% FY16 FY17 FY18 FY19 FY20 H1 FY21 connectivity CSS revenue CSS Segment Result Margin

Key customers

2021-05-04 Copyright © Infineon Technologies AG 2021. All rights reserved. 62 Market outlook for CSS division’s target applications – brightening but foundry supply constraints limit upside potential in the near-term

Applications Market Outlook for CY21 (not considering supply constraints) (% of FY20 segment revenue)

Industrial IoT › Growth driven by general market recovery in industrial automation and energy efficiency incentive programs for home appliances

› New features and technologies enter production and proliferate across several devices Industrial and Consumer › Increasing penetration rate of eSIM Automotive driven by increasing connectivity requirements IoT › Connectivity technologies to improve in-car user experience ~70% Gaming › Market growth driven by launch of new console models

Wearables › New product launches expected to boost demand › Further implementation of low-power processing and connectivity technologies across new models

Payment Payment, › High demand for contactless payment solutions expected to continue ID, Ticketing ~30% Identification › Prolonged restrictions on international travel expected to further affect the issuance of passports, partially compensated by a major eID project roll-out

Security ICs (excl. NFC controller; excl. NFC eSE) Wi-Fi standalone ICs 2019 total market: $2.8bn 2019 total market: 978m units

Infineon is focusing on wearables and IoT but not addressing routers, PCs, notebooks, tablets.

Infineon 26.3% Media Tek 16.3%

NXP 21.5% NXP 15.9% (+0.1-pt)

Samsung 17.8% Qualcomm 14.5%

STMicro 12.7% Broadcom 10.0%

CEC Huada 9.2% Infineon 9.8%

ABI Research: Wireless Connectivity Technology Segmentation and Addressable Markets – ABI Research: Smart Card and Embedded Security IC Technologies. October 2020 Q3 2020 Update. July 2020

Industrial and Consumer IoT Payment, ID, Ticketing

Industrial Automotive Smart Home Gaming Wearables Payment Identification Applications

Compute

Wireless Connectivity

Security

Software CSS CSS capabilities

2021-05-04 Copyright © Infineon Technologies AG 2021. All rights reserved. 65 Compute, connectivity, security and software ecosystem capabilities enable Infineon to address a growing market driven by the IoT

Infineon offers the entire system for IoT CSS market*

[EUR bn] MCUs Connectivity Security

CSS offering Cloud CAGR +10% ATV, IPC, PSS offering 14.9

sensors software and ecosystem power

motor microph. wireless connectivity lightDigital 9.4 pressure RF and memory world MCU power coil radar sensors ICs AC-DC 3D ToF security hardware DC-DC haptic more ... more ... security software

IoT control loop 2020 2025 * Source: Infineon internal market model based on SAM view

MCU market* Trends in MCU markets Segments and focus topics

[EUR bn] Others Continued growth of CAGR Consumer MCUs in smart home, IoT & Consumer Industrial driven by home automation devices and › Deliver core IoT blocks (MCU, radios, +8% wearables software) and bundled solutions 6.4 › Pairing of MCU and connectivity Industrial MCUs growing › Prepare and enable emerging edge compute across wide range of wave with ML capabilities applications › Leading integrated security features 4.3

Blurring cost/performance Industrial differences between MCUs and MPUs › Deliver highly differentiated MCU based industrial solutions

Beginning to embrace › Provide easy to use sub-system solutions 32-bit MCU with machine based on Infineon building blocks (sensor learning (ML) control, motor control, power management acceleration for edge and connected MCUs) 2020 2025 compute * Source: Infineon internal market model based on SAM view

Wi-Fi market* Trends in Wi-Fi markets Segments and focus topics

[EUR bn] IoT & Consumer CAGR Specially suited for IoT +13% devices with basic › Broad portfolio with Wi-Fi 4 / 5 / 6 standalone 4 connectivity, low cost, and combo offerings 2.7 low-power requirements › Lead transition to Wi-Fi 6 for IoT

IoT low-power

Focus on high bandwidth › Extend leadership on low-power devices IoT applications to 1.4 ensure data transmission › System-level power optimization using optimized Wi-Fi product architecture

Automotive New standard Wi-Fi 6 is › Extend leadership in automotive infotainment and gaining momentum telematics with Wi-Fi 6 combo offerings initially on high- › Enable enhanced use cases with low-energy performance applications audio in auto infotainment 2020 2025

* Source: Infineon internal market model based on SAM view

2021-05-04 Copyright © Infineon Technologies AG 2021. All rights reserved. 68 Bluetooth – Market driven by further penetration of Bluetooth use cases across devices; CSS focus topics enable this development

Bluetooth (BT) market* Trends in Bluetooth markets Segments and focus topics

[EUR bn] Continued growth in Smart Home › Focus on Mesh 1.1 and Mesh 2.0 (upcoming) CAGR smart home, driven by device network protocols home automation +11% › Drive engagements for emerging standards such devices and wearables as Connected Home over IP 3.0 Streaming & Compute Covid-19 provides › Grow BLE-HID (Human Interface Devices) foot- tailwinds for work-from- print home electronics and › Drive beacons, tags with BLE Location + security continued digitalization in asset-tracking/industrial 1.8 Automotive Shift from Bluetooth › Leverage Infineon Automotive footprint to add auto- single mode and BT/BLE body and sensor connectivity to BLE single mode › Enhance in-cabin experience

Wearables LE Audio and Mesh 1.1 › Infineon Wireless Audio Stereo Synchronization are new standards for BT (WASS) in BT speakers as a differentiation audio and device › Proliferate footprint in wearables by leveraging 2020 2025 networks WASS technology * Source: Infineon internal market model based on SAM view

2021-05-04 Copyright © Infineon Technologies AG 2021. All rights reserved. 69 Security – Several long-term key trends driving value, generating emerging opportunities, shaping CSS’ focus in the security field

Security ICs market* Trends in security ICs market CSS focus Segments

Emerging [EUR bn] Payment Maturing Proliferation of Innovation leadership CAGR Contactless, smart wearables and +7% contactless payment › Leading silicon technology platforms accessories, biometric cards › Contactless performance 2.7 › Secure embedded control Identity Growth of payment- Electronic identification enabled wearables

1.9 Increasing solution share Ticketing & Access eTicketing, access management Proliferation of IoT › Enhance full solutions portfolio (silicon devices with increased + software) with extension of security requirements SECORA™ and OPTIGA™ families Device Authentication Accessories, printer authentication, battery authentication, wireless Increasing penetration charging of eSIM Consumer in Prepare for market opportunities mobile devices › Address adjacent and new market Mobile Security opportunities like biometric cards, eSIM Consumer, SIM Anti-counterfeiting for wireless charging, new consumer devices to authentication applications, among protect end users’ Trust Anchors others IoT nodes & infrastructure, 2020 2025 health and experience automotive security * Source: Infineon internal market model based on SAM view

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 Combo Sensing Sensing Sensing XENSIV™ Sensor MEMS microphone, XENSIV™ Sensor LED Drivers radar IC Security

Security OPTIGA™ OPTIGA™ HMI Capacitive touch HMI Security controller

Capacitive touch OPTIGA™ Audio controller Class D Audio IC Audio MCU MCU Class D Audio IC XMC PSoC™ 6

FY20 revenue by region Revenue by sales channel*

Distribution and EMS partners Top-10 direct customers Americas EMEA (excl. Germany) 12% 15%

Japan 9% Germany 12% Top-10 direct Distribution customers and EMS APAC partners (excl. GC, Japan) 15% Mainland China, Hong Kong other direct GC (excl. Mainland customers 29% China, Hong Kong) 8% * assuming 12-months revenue contribution of Cypress

Revenue* and gross margin development

[EUR m] › Cyclical dynamics coinciding with a structural upturn › Demand is outstripping supply in almost all 2,631 2,700 2,490 semiconductor areas 2,174 › Many products are on allocation and inventories are lean 1,986 › Accelerating adoption rates for structural drivers like electro-mobility and IoT

37.4% 36.0% Book-to-bill** 34.5% 31.8% 1.6 2.1 1.2 27.0% 0.9 489 470 0.7 274 220 379 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 FY20 FY20 FY20 FY21 FY21 FY20 FY20 FY20 FY21 FY21

Revenue Segment Result Gross Margin * Consolidation of Cypress revenue as of 16 April 2020. ** For definition see notes

Revenues* Segment Result* Margin Book-to-bill [EUR m] [EUR m] 197 185 1,150 1,219 1,045 2.3 842 810 1.5 59 16.2% 1.3 49 16.1% 0.8 5.8% -26 5.6% 0.2 -3.2% Q2 Q3 Q4 Q1 Q2 FY20 FY20 FY20 FY21 FY21 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 FY20 FY20 FY20 FY21 FY21 FY20 FY20 FY20 FY21 FY21

› Positive revenue contribution from almost all areas - particular strong demand for electric vehicles components › Stable margin: negative impacts of Austin power outage and of annual price adjustments compensated by lower underutilization charges › Scarce manufacturing capacities, in particular at foundries and subcons, put a speed limit to the automotive recovery. › EV and ADAS remain very robust structural trends * With effect from 1 Oct 2020, we transitioned a group of industrial microcontrollers with an annual sales volume of a low-double digit million Euros from ATV to CSS. Historical figures have been retroactively adjusted.

Revenues Segment Result Margin Book-to-bill [EUR m] [EUR m]

358 366 349 362 361 69 63 62 61 59 1.6 1.4 19.8% 1.0 1.1 17.3% 17.2% 16.9% 16.3% 0.7

Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 FY20 FY20 FY20 FY21 FY21 FY20 FY20 FY20 FY21 FY21 FY20 FY20 FY20 FY21 FY21

› Sequential revenue decline in transportation compensated by revenue increases in all other application areas › Renewables - positive momentum continues › Market conditions for industrial applications continue to brighten › Home appliances remain strong, driven by pent-up demand and energy-saving regulations

Revenues Segment Result Margin Book-to-bill [EUR m] [EUR m] 759 779 787 209 681 197 617 184 1.9 138 143 27.5% 1.6 25.3% 23.4% 22.4% 1.2 1.2 0.9 21.0%

Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 FY20 FY20 FY20 FY21 FY21 FY20 FY20 FY20 FY21 FY21 FY20 FY20 FY20 FY21 FY21

› Strong demand in multiple end markets, from power tools to telecom servers, overcompensating the seasonal decline in smartphone › Supply constraints, in particular from foundries, capped further upside › Digitalization leads to disruptive innovations in consumer and industrial applications - smart and “sensorified” devices, edge computing, 5G networks and cloud data centers provide attractive growth opportunities

Revenues* Segment Result* Margin Book-to-bill [EUR m] [EUR m] 333 335 329 312 2.6 2.6

42 45 166 39 1.1 30 1.1 25 0.8 15.1% 12.5% 12.6% 13.4% 9.1%

Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 FY20 FY20 FY20 FY21 FY21 FY20 FY20 FY20 FY21 FY21 FY20 FY20 FY20 FY21 FY21

› CSS severely affected by supply constraints - power outage in Austin adds further tightness to the scarce foundry capacities › Increased demand for security solutions e.g. contactless payment and device authentication, dampened revenue impact › Unabated secular trend towards smart connected devices - vibrant demand especially for general-purpose microcontrollers and connectivity (Wi-Fi/Bluetooth)

* With effect from 1 Oct 2020, we transitioned a group of industrial microcontrollers with an annual sales volume of a low-double digit million Euros from ATV to CSS. Historical figures have been retroactively adjusted.

25%

15%

-5% FY17 FY18 FY19 FY20 Q2 FY20 Q3 Q4 Q1 FY21 Q2 Adjusted RoCE (excl. effects from International Rectifier and Cypress acquisition, Deferred Tax Effects, RF Power sale) RoCE

Development of earnings-per-share (EPS) from continuing operations

[EUR cent] 28 24 20 19 15 13 13 13 8 EPS basic Q2 Q3 Q4 Q1 FY21 Q2 EPS adjusted -11 Total cash return to shareholders

[EUR m]

305 336 › Dividend for FY20: €0.22 per share 283 286 225 248 › Dividend payout of €286m for FY20 on 2 Mar 2021

FY16 FY17 FY18 FY19 FY20 FY21

dividends (payout year)

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 972 333 341 328 985 321 308 316 308 311 793 241 686 214 587 37.4% 36.0% 34.5% 31.8% 14.8% 14.5% 12.1% 12.4% 12.7% 12.6% 12.4% 12.1% 27.0% 10.8% 11.8%

Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 FY20 FY20 FY20 FY21 FY21 FY20 FY20 FY20 FY21 FY21 FY20 FY20 FY20 FY21 FY21 Therein non-segment result charges Therein non-segment result charges Therein non-segment result charges [EUR m] [EUR m] [EUR m] 21 193 118 75 89 2 8 11 8 4 18 79 68 60 58 Adjusted gross margin 35.6% 35.9 % 36.6% 40.3% 39.3%

2021-05-04 Copyright © Infineon Technologies AG 2021. All rights reserved.Copyright © Infineon Technologies AG 2021. All rights reserved. Working Capital, in particular trade working capital components

Working capital* Inventories [EUR m] [EUR m] [days] 2,215 1,762 2,052 1,955 1,937 1,505 1,736 1,007 993 945 120 126 109 107 101

Q2 FY20 Q3 Q4 Q1 FY21 Q2 Q2 FY20 Q3 Q4 Q1 FY21 Q2 Inventories DIO* Trade receivables Trade payables [EUR m] [days] [EUR m] [days] 1,273 1,196 1,348 1,091 1,160 1,127 1,047 1,114 1,155 883

53 54 53 54 58 40 36 34 31 36 Q2 FY20 Q3 Q4 Q1 FY21 Q2 Q2 FY20 Q3 Q4 Q1 FY21 Q2 Trade receivables** DSO* Trade payables DPO*

* For definition please see page "Notes". ** Along with the integration of Cypress refund liabilities to customers are presented under “other current liabilities” instead of “trade receivables”. Prior quarters’ figures were adjusted accordingly for better comparability.

Investments* Depreciation & Amortization

[EUR m] [EUR m]

~1.6bn ~1.6bn 1,451 1,254 1,260 ~500 1,099 1,022 315 945 861 826 833 812 87 103 140 129

16.5% 18.1% ~14.8% 12.8% 14.5% 12.9% 14.0% ~14.8% 12.8% 11.5% 11.3% 11.8% 693 683 758 858 945

FY16 FY17 FY18 FY19 FY20 FY21e FY16 FY17 FY18 FY19 FY20 FY21e Non-SR-related D&A Guidance % of revenue [rhs]

* For definition please see page "Notes".

[EUR m] Gross Cash Gross Debt Net Cash/Debt

4,588

3,450

3,444

3,334

3051

3,227 3,051

Q2 Q3 Q4 Q1 Q2

FY20 FY21

6,703 3,369

6,859 3,415

7,033 3,806

- -

7,746 4,296

- -

› Q4 FY20: early repayment (USD 555m) of bank debt incurred for the Cypress acquisition. › Q1 FY21: Gross debt – reduced by 174m EUR repayment and impact of weaker US-dollar on USD-denominated debt. Net debt: improvement driven by strong free cash flow and, to some extent, currency effects. › Q2 FY21: Gross cash increased, as strong free cash flow more than offset dividend payment; gross debt only driven by stronger US-Dollar impacting USD-denominated debt

[EUR m; US$ m; nominal values] Eurobond (Mar 2022) Term loans (Sep 2022, Sep 2023, Jun 2024) Corporate bonds under the EMTN program (Jun 2023, Jun 2026, Jun 2029, Jun 2032) US PP Notes (Apr 2024, Apr 2026, Apr 2028) €750 Hybrid bonds* (Jan 2025, Jan 2028)

$555 $1,110 $1,110 €750

€600 €600 €750 €500 €650 $350 $350 €171 $235 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032

Graph excludes pre-existing Cypress convertibles of ~$382m repayment value, maturing latest 2022, and additional debt with maturities between 2021 and 2023 totaling €9m. * On 1 Oct 2019, Infineon issued a perpetual hybrid bond with two tranches: €600m with first call date in 2025 and €600m with first call date in 2028; both are accounted as equity under IFRS.

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 storage system ADAS advanced driver assistance system EV electric vehicle AEB automatic emergency braking FHEV full hybrid electric vehicle AFS advanced frontlight system FPGA field programmable gate array AI artificial intelligence G2M go-to-market AR augmented reality GaN gallium nitride ASP average selling price GPS global positioning system BEV battery electric vehicle GPU graphics processing unit BGA ball grid array HEV mild and full hybrid electric vehicle BLE Bluetooth Low Energy HMI human machine interaction BMS battery management system HSM hardware security module BoM bill of material HST high-speed train BT Bluetooth HVAC heating, ventilation, air conditioning CL contactless HW hardware CPU central processing unit IC integrated circuit CRC cyclical redundancy check ICE internal combustion engine DC direct current IGBT insulated gate biploar transistor DC-DC direct current - direct current IoT Internet of Things DIF dual-interface (contact-based and contactless) IPM intelligent power module DIY do it yourself IVN in-vehicle networking DPM digital power management iPol image processing line eCall emergency call IRFPolP International Rectifier

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. SiC silicon carbide µC microcontroller SiGe silicon germanium Mb megabit SMD surface mounted device MCU microcontroller unit SMPS switch-mode power supply MEMS micro electro-mechanical systems SNR signal-to-noise ratio MHA major home appliances SoC system-on-chip MHEV mild hybrid electric vehicle SOTA software over-the-air MIMO multiple input, multiple output SPI serial peripheral interface micro-hybrid vehicles using start-stop systems and limited recuperation SRAM static random access memory mild-hybrid vehicles using start-stop systems, recuperation, DC-DC conversion, e-motor SW software MOSFET metal-oxide silicon field-effect transistor TAM total addressable market MPU microprocessor unit TCO total cost of ownership OBC on-board charger ToF time-of-flight OEM original equipment manufacturer TPM trusted platform module P2S Infineon‘s strategic product-to-system approach UPS uninterruptible power supply PAS photo-acoustic spectroscopy USB universal serial bus PFC power factor correction V2X vehicle-to-everything communication PHEV plug-in hybrid electric vehicle VR virtual reality PMIC power management IC VSD variable speed drive Pol point-of-load Wi-Fi wireless fidelity PSoC programmable system-on-chip xEV all degrees of vehicle electrification (EV, HEV, PHEV)

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 subject to a multitude of uncertainties and risks. Actual business development may therefore differ materially from what has been expected. Beyond disclosure requirements stipulated by law, Infineon does not undertake any obligation to update forward-looking statements.

Specific disclaimer for Omdia – part of Informa Tech – reports, data and information referenced in this document: The Omdia reports, data and information referenced herein (the “Omdia Materials – mostly former IHS Markit Technology Materials") are the copyrighted property of Informa Tech Research Ltd. and its subsidiaries or affiliates (together "Informa Tech") and represent data, research, opinions or viewpoints published by Informa Tech, and are not representations of fact. The Omdia Materials speak as of the original publication date thereof and not as of the date of this document. The information and opinions expressed in the Omdia Materials are subject to change without notice and neither Informa Tech nor, as a consequence, Infineon have any duty or responsibility to update the Omdia Materials or this publication as a result. Omdia Materials are delivered on an "as-is" and "as-available" basis. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in the Omdia Materials. To the maximum extent permitted by law, Informa Tech and its affiliates, IHS Markit and its Affiliates and their respective, officers, directors, employees and agents, disclaim any liability (including, without limitation, any liability arising from fault or negligence) as to the accuracy or completeness or use of the Omdia Materials. Informa Tech and/or IHS Markit will not, under any circumstance whatsoever, be liable for any trading, investment, commercial or other decisions based on or made in reliance of the Omdia Materials. The "IHS Markit" brand and logo have been licensed for use by Informa Tech. The "IHS Markit" brand and logo and any third-party trademarks used in the IHS Markit Technology Materials are the sole property of IHS Markit Group or their respective third-party owners.

Specific disclaimer for IHS Markit – reports, data and information referenced in this document: The IHS Markit reports, data and information referenced herein (the "IHS Markit Materials") are the copyrighted property of IHS Markit Ltd. and its subsidiaries ("IHS Markit") and represent data, research, opinions or viewpoints published by IHS Markit, and are not representations of fact. The IHS Markit Materials speak as of the original publication date thereof and not as of the date of this document. The information and opinions expressed in the IHS Markit Materials are subject to change without notice and neither IHS Markit nor, as a consequence, Infineon have any duty or responsibility to update the IHS Markit Materials or this publication. Moreover, while the IHS Markit Materials reproduced herein are from sources considered reliable, the accuracy and completeness thereof are not warranted, nor are the opinions and analyses which are based upon it. IHS Markit and the trademarks used in the Data, if any, are trademarks of IHS Markit. Other trademarks appearing in the IHS Markit Materials are the property of IHS Markit or their respective owners.

Date Location Event 6 May 2021 Nuremberg → virtual IPC Business Update Call along with virtual PCIM trade show 19 May 2021 Tarrytown → virtual Berenberg US Conference 25 May 2021 New York → virtual 3rd Annual Mizuho Auto Technology Seminar 26 May 2021 Milan → virtual Equita 16th European Conference 27 May 2021 London → virtual JPMorgan European TMT Conference 1 Jun 2021 New York → virtual Cowen TMT Conference 8 – 9 Jun 2021 Paris → virtual 23rd Exane BNP Paribas European CEO Conference 10 Jun 2021 San Francisco → virtual Bank of America Global Technology Conference 16 Jun 2021 Berlin → virtual dbAccess Berlin Conference 17 Jun 2021 London → virtual GS European Digital Economy Conference 1 Jul 2021 Barcelona // virtual PSS Business Update Call along with MWC trade show 3 Aug 2021* Q3 FY21 Results 1 Sep 2021 Chicago → virtual Jefferies Annual Semiconductor Conference 2 Sep 2021 Frankfurt → virtual Commerzbank Corporate Conference 2 Sep 2021 London → virtual dbAccess European TMT Conference 4/5 Oct 2021 London // virtual Infineon Capital Markets Day “IFX Day 2021”

* preliminary

1) This figure considers manufacturing, transportation, function cars, flights, materials, chemicals, water/waste water, direct emissions, energy consumption, waste, etc. and is based on internally collected data and externally available conversion factors. All data relate to the 2020 fiscal year. Manufacturing service providers are not included. 2) This figure is based on internally established criteria, which are explained in the explanatory notes. The figure relates to the calendar year 2019 and considers the following fields of application: automotive, LED, induction cookers, server,

renewable energy (wind, photovoltaic), mobile phone chargers as well as drives. CO2 savings are calculated on the basis of potential savings of technologies in which semiconductors are used. The CO2 savings are allocated on the basis of Infineon market share, semiconductor content and lifetime of the technologies concerned, based on internal and external experts' estimations. 3) Calculation based on average polycrystalline photovoltaic cells and the average yearly solar radiation of central Germany. 4) Based on the average electricity consumption of private households in Germany and official energy conversion factors. 5) Calculation based on average passenger capacity and direct flight route using externally available data and conversion factors.

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 liabilities' – 'Short-term debt and current maturities of long-term debt' – 'Liabilities classified as held for sale')

RoCE = NOPAT / Capital Employed = ('Income from continuing operations' – 'financial income' – 'financial expense') / Capital Employed

Working Capital = ('Total current assets' – 'Cash and cash equivalents' – 'Financial investment' – 'Assets classified as held for sale') – ('Total current liabilities' – 'Short term debt and current maturities of long-term debt' – 'Liabilities classified as held for sale')

DIO (days inventory outstanding; quarter-to-date) = ('Net Inventories' / 'Cost of goods sold') x 90

DPO (days payables outstanding; quarter-to-date) = ('Trade payables' / ['Cost of goods sold' + 'Purchase of property, plant and equipment']) x 90

DSO (days sales outstanding; quarter-to-date) = ('Trade receivables’ - ‘reimbursement obligations’)* / 'revenue'* x 90

*without debtors with credit balances

Book-to-bill ratio - Definition

Book-to-bill = Orders received / Revenue in Euro per quarter

› Orders received contains order backlog and external customer forecast External customer forecast includes consignment stock forecast by customers Not included are internal consignment replenishment orders

› Orders received does not include unconfirmed orders received Unconfirmed demand will be reported as orders received and in book-to-bill when it gets confirmed

› Orders received may not coincide with the IFRS 15 definition of a contract with a customer

IPC Business Update Call ATV Business Update Call Dr. Peter Wawer Peter Schiefer 6 May 2021 5 October 2020

https://www.infineon.com/2021ipccall https://www.infineon.com/2020atvcall

Sustainability Report 2020 CSS Business Update Call 23 November 2020 Thomas Rosteck 3 March 2021

https://www.infineon.com/sustainability_report https://www.infineon.com/2021csscall

Alexander Foltin Executive Vice President Finance, Treasury & Investor Relations +49 89 234-23766 [email protected]

Joachim Binder Isabell Diel Distinguished Engineer Investor Relations Manager Investor Relations +49 89 234-25649 +49 89 234-38297 [email protected] [email protected]

Alexander Groschke Holger Schmidt Director Investor Relations Director Investor Relations +49 89 234-38348 +49 89 234-22332 [email protected] [email protected]