Third 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 Power supplies Information and data Industrial IoT about the real world

Drives Connectivity

Smart Home Real-world Software Digital applications Ecosystem world

Smart City

Consumer IoT Value addition and optimized use of resources Smartphones

Health care products Automotive

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

Outlook Q4 FY21* Outlook FY21*

Revenue ~ €2.9bn ~ €11.0bn

Segment Result Margin ~ 19% > 18%

Investments in FY21 ~ €1.6bn

D&A in FY21 €1.5bn – €1.6bn**

Free cash flow in FY21 ~ €1.5bn (prev.: > € 1.2bn)

* 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%

9 Our products and innovations together with an efficient production are key elements to deal with climate change

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 - 06/2021 Euronext Vigeo Eurozone 120 Index Indices member - 06/2020 Euronext Vigeo Europe 120 Index Sustainalytics 77 “Outperformer” level 0 to 100 06/2020

13 ATV at a glance

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 Market Outlook for CY22

› CY21 market recovery hindered by semiconductor › Gradual easing of semiconductor shortages is expected shortages as well as new COVID-19 outbreaks › Uncertainties around COVID-19 pandemic into CY22 › Continued market uncertainties mainly due to COVID-19 pandemic › Around 90m light vehicles expected to be produced

› Incentives and CO2 regulations should keep demand high › Electro-mobility momentum expected to continue

› Improving consumer sentiment around sustainability › Government incentives, CO2 regulations as well as theme consumer demand expected to support the growth › Steady investments in EV charging infrastructure further momentum lowers reservation towards EVs

› Further increase in L1 and L2 penetration expected › L1 and L2 will see strong growth at the expense of L0 › L2+ shipments still at the inital phase › L2+ shipments will grow from a comparatively small base

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.

17 During H1 CY21, xEV (PHEV + BEV) sales more than doubled y-y in all regions; market figures indicate no slow down of e-mobility boom

+166% +155% +156% +195%

[units k] 2,630

991 1,063 1,142

285 414 387 112

Jun 20 Jun 21 Jun 20 Jun 21 Jun 20 Jun 21 Jun 20 Jun 21 YTD YTD YTD YTD YTD YTD YTD YTD

Source: IHS Markit: PEV Volumens, preliminary numbers. July 2021

/ Government regulations 2050: Spain, cities with > 50,000 inhabitants: no ICE on the street. 2035: › EU: all new cars zero-emission. 2040: Spain, cities with › China: public transport vehicles to be fully electrified. > 50,000 inhabitants: no › Canada: no new ICE on sales. 2040: new ICE on sale. › California, Massachusetts, New Jersey, Thailand: no ICE on the street. › Honda: “All new vehicles will be BEV.”

2030: › Japan: no ICE on the street. 2039: › UK, Denmark, Sweden, Ireland, Netherlands: no ICE on sale. › BMW: “All new vehicles will be BEV.” › IEA: no new ICE car sales recommended. 60% of global car

sales to be BEV or H2. 2035: › GM: "All new vehicles will be BEV.” 2025: › VW brand: “To end sales of ICEs in Europe.” › Norway: no new ICE on sale. › Mallorca: no Diesel car on sale. › Netherlands, special zones: only electrified 2033: trucks and delivery vehicles allowed. › Audi: “All new vehicles will be BEV.”

2023: Spain, cities with > 50,000 2030: inhabitants: only zero-emission › Volvo: “All new vehicles will be BEV.” vehicles allowed. › Ford: "All new vehicles in Europe will be BEV. 40% of Ford global vehicle volume to be BEV.” › Jaguar: “No new ICEs.” › BMW: "50% of all new vehicles to be BEV.”

2025: › Lamborghini: “All new vehicles will be BEV or PHEV.” › Mercedes: “The upcoming S class generation will be available as BEV only.” / OEM statements

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

21 Radar/Lidar modules and sensor fusion will grab the lion’s share of semiconductor BoM in ADAS/AD-equipped cars

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.

2021-08-03 Copyright © Infineon Technologies AG 2021. All rights reserved. 22 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 FY20 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.

2021-08-03 Copyright © Infineon Technologies AG 2021. All rights reserved. 23 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

25 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 = 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 ATV IPC PSS

6,500 V

4,500 V CoolSiC™ roadmap IGBT 3,300 V modules

1,700 V

1,200 V SiC MOSFET today IGBT IGBT (CoolSiC™) 900 V (discretes, modules) discretes high-voltage MOSFETs (CoolMOS™) 600 V IPMs 400 V GaN HEMT today (CoolGaN™) 150 V mid-voltage MOSFETs (OptiMOS™) 100 V CoolGaN™ roadmap 80 V MOSFETs low-voltage MOSFETs 40 V (OptiMOS™) (OptiMOS™) * excluding driver ICs and control ICs 20 V

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

33 IPC at a glance

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 Market Outlook for CY22 (% of FY20 segment revenue)

Automation and Drives › Industrial Drives recovering in high single digits with › Recovery expected to last well into FY22 due to demand ~30% demand growing mainly in GC region exceeding supply and long lead times

Renewable Energy › Wind: demand remains on a high level (incentive-driven Generation › Wind: installations forecasted at similar level as in CY21 ~24% pull-in effects in CY20 without impact on CY21 shipments) › PV: ongoing double-digit y-y growth in installations › PV: ongoing double-digit y-y growth in installations

~16% › Catch-up of delayed purchases and energy efficiency › Demand still driven by energy efficiency incentive for China incentive programs will drive growth room air conditioners

Transportation › Infrastructure program in China (HST grid density) expected › Diminished COVID-related travel activities caused further ~13% to drive growth for rail; emission free cities regulations push-out of construction of passenger trains and e-Busses growth driver for delivery vehicles and eTrucks

Power Infrastructure › Growing demand in EV charging infrastructure, Industrial ~9% › Strong growth of xEV driving charging infrastructure; UPS and energy storage systems continuous installation of renewable energy generation › Delays in Transmission & Distribution projects driving Energy Storage Systems

Others 8% › Long term positive outlook driven by general trend of › Growth driven by general market recovery electrification in emerging applications (e.g. e-Marine)

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

41 PSS at a glance

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 H2 CY21 Market Outlook for CY22 (% of FY20 segment revenue)*

Computing › Structural drivers expected to stay in cloud computing and › Acceleration towards cloud computing to continue ~20% good momentum for enterprise servers › Pandemic-driven stay at home and work at home effects › Demand for CY22 supported by limited supply in CY21 continue to favor notebook sales (catch-up effects)

Communication › In general, long-term drivers due to 5G still intact › 5G cycle will continue to drive telecom equipment ~9% › However, trade tensions generate some uncertainty spending in CY22 around speed of roll-out in China and other regions

› Strong rebound expected driven mainly by economic Smartphones recovery and migration towards 5G phones › 5G replacement cycle expected to continue to drive ~19% › Potential risk due to reduced smartphone growth due to demand growth shortages, regional weaker demand (India/ China), 5G slower boost than expected › Consumer electronics, including e.g. game consoles, clear Consumer beneficiaries from stay at home › Demand expected to decline in some consumer areas as ~20% › Battery-powered tools continue to show strong momentum TVs in light of re-allocation of consumer spending › Consumer spending may be re-allocated to more leisure- oriented activities

Industrial › Automotive and other industrial segments show strong › Demand in renewable energy, EV charging and ~23% recovery; however, automotive production has taken hits automotive expected to be healthy from chip shortages › Tailwinds from stimuli packages for EV and green energy * does not sum up to 100% due to other applications not shown here in US and EU

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

45 Infineon is the clear leader in MOSFETs; growth potential in power ICs

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

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

Application in eScooters Power semis Control & connect Sensors Security › current sensor › protection FET › battery battery management system › PSoC™ MCU › pressure sensor › cell balancing IC authentication › gas sensor

› MOSFET › XMC™ MCU charging › gate driver › XMC™-SC MCU

› eSIM › Wi-Fi connectivity › communication › Bluetooth › authentication › CIPURSE™ › positioning sensor HMI & control security controller › capacitive-sensing for mobile payment › radar sensor sensor Systems › ToF 3D sensor › positioning sensor

› MOSFET › XMC™ MCU motor drive › positioning sensor › gate driver › AURIX™ MCU

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

52 Main applications addressed by PSS sensors portfolio

MEMS microphone 3D radar (24/60 GHz) 3D ToF image sensor Environmental

High Ultra-low Best audio Best price / precision and power performance performance Small form consumption 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 1,475 559 1,282 456 908 361 285 476 171

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

2021-08-03 Copyright © Infineon Technologies AG 2021. All rights reserved. 54 Unparalleled audio characteristics of our XENSIV™ MEMS microphones made Infineon #1 in 2019 with further m/s gain in 2020

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

44.2% 2020 MEMS die market share 34.7% 33.5% 35.7% total market: 6.0bn units 26.5% Infineon 44.2% Knowles 38.3% 8.8% 3.5% 5.2% MEMSensing 6.8% #1 #1 Omron 3.5% 2006 2008 2010 2012 2014 2016 2018 2020 NJRC 2.6%

Based on or includes research from Omdia: MEMS Microphones Dice Market Shares 2021. July 2021 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)

Presence detection Health monitoring

› Room Occupancy Devices › Sleep monitoring e.g. human localization and counting Sleep detection, sleep quality, apnea & snoring detection (radar combined with MEMS microphone) › Occupancy based heating and ventilation › Vital sensing for home Fitness e.g. reduction of CO2 level to prevent spreading of diseases Heart rate and breathing rate measurement (person standing still after exercise)

› Device switch on/off Segmentation with radar enables smart devices to recognize each e.g. reduction of energy consumption (e.g. lamp, TV, person in the room air conditioning…)

› Directional audio effects on individuum e.g. to improve audio quality (e.g. smart speaker, TV)

› Home surveillance e.g. detection of intruders

Mobile Phones

– User Facing

Face ID Face

Hand ID Hand

Payment 3D Gestures 3D

Mobile Phones

– World Facing

Bokeh

AR Gaming AR

Virtual RetailVirtual 3D Scanning 3D

Consumer

Robotics

Robot

Collision

Last Mile Last

avoidance avoidance Navigation

Augmented- &

Virtual Reality

Control

Mapping AR Gaming AR

Photoacoustic spectroscopy (PAS) technology based on Infineon‘s high (SNR) signal-to-noise ratio MEMS microphone

› Infineon XENSIV™ PAS CO2 sensor enables highly-precise, cost-effective and space saving 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 performance and fast design-to-market

XENSIVTM PAS CO2 leads to demand-oriented and energy efficient control of air conditioning systems

XENSIVTM PAS CO2 sensor

measures the CO2 level

Example offering: Combination of sensors, microcontrollers and Key facts connectivity in development kit

› Infineon offers system solutions comprising of sensor, MCU, connectivity and software libraries XENSIVTM Radar + Pressure (apps, SDKs) Wing Board › BLE functionality monolithically integrated on MCU › IoT target applications for radar: entrance control or XENSIVTM presence detection for smart home and smart PAS CO2 Wing Board building › Radar solutions are anonymous and therefore Main board with respecting privacy MCU + Wi-Fi + › First orders for presence detection received from Bluetooth combo several Asian customers › Radar solution can perfectly Advantages of radar over passive infrared 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

60 CSS at a glance

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

2021-08-03 Copyright © Infineon Technologies AG 2021. All rights reserved. 61 Market outlook for target applications remains positive but foundry supply constraints might limit growth potential in 2022

Applications Market Outlook for CY21 Market Outlook for CY22 (% of FY20 segment revenue)

› Growth driven by general market recovery in industrial Industrial IoT › Growth momentum in industrial segments to continue automation and energy efficiency incentive programs for into 2022 home appliances

› New features and technologies enter production across › Further growth momentum across smart home devices several devices expected Industrial and › Increasing penetration rate of eSIM Automotive driven › Increasing penetration rate of eSIM Automotive and in- Consumer by increasing connectivity requirements car connectivity to continue along with further recovery IoT › Connectivity technologies to improve in-car user experience of overall light vehicle sales ~70% Gaming › The market is assumed to decline slightly from a high › Market growth driven by launch of new console models level after CY21

Wearables › New product launches expected to boost demand › Growth in wearables market is assumed to stretch in › Further implementation of low-power processing and 2022 driven mainly by smart watches connectivity technologies across new models

Payment › High demand for contactless payment solutions › Further migration and high demand for contactless Payment, expected to continue while supply constrains might payment solutions expected to continue however under ID, poise risks risk of foundry supply constraints Ticketing › Prolonged restrictions on intercontinental travel ~30% Identification › Positive trend expected driven by recovery in passports expected to further affect the issuance of passports, issuance as well as project roll-out for other partially compensated by a major eID project roll-out eDocuments

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

2021-08-03 Copyright © Infineon Technologies AG 2021. All rights reserved. 64 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 Cloud CAGR +10%

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 MCUs CAGR Consumer IoT & Consumer in smart home, driven by Industrial home automation devices › Deliver core IoT blocks (MCU, radios, +8% and 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

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

2021-08-03 Copyright © Infineon Technologies AG 2021. All rights reserved. 67 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

2021-08-03 Copyright © Infineon Technologies AG 2021. All rights reserved. 68 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

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

72 Strong presence in all regions; well-balanced customer portfolio; no customer represents more than 10% of total sales

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

Revenues and segment result USD exchange rate

[EUR m] Revenues Segment result Margin Average exchange rate

60% Q3 Q2 Q3 2,631 2,700 2,722 2,490 FY20 FY21 FY21 50% 2,174 ø USD/EUR 1.10 1.21 1.20 2000 40% Book-to-bill* *See notes for definition **Calculated on a like-for-like basis 30% 18.6% 17.4% 18.2% 2.4** 15.2% 20% 2.1 10.1% 1.6 1.2 10% 0.7 379 489 470 496 0 220 00% Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 FY20 FY20 FY21 FY21 FY21 FY20 FY20 FY21 FY21 FY21

Revenues* Segment Result* Margin Book-to-bill [EUR m] [EUR m] 199 185 197 1,219 1,205 1,150 2.3 2.3** 1,045 16.1% 16.2% 16.5% 810 1.5 59 1.3

-26 5.6% 0.2 -3.2%

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

**Calculated on a like-for-like basis, see notes › Significant demand across all product areas, however … › … supply constraints, in particular temporary shutdowns at Austin and Melaka sites, capped revenue growth; profitability was preserved › In an overall restrained car market, the adoption of electric vehicles remains on a strong trajectory

* 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] 412 366 349 362 361 82 69 63 1.8* 61 59 1.6 1.4 19.9% 19.8% 1.1 17.2% 16.9% 16.3% 0.7

Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 FY20 FY20 FY21 FY21 FY21 FY20 FY20 FY21 FY21 FY21 FY20 FY20 FY21 FY21 FY21 *Calculated on a like-for-like basis, see notes

› All application areas contributed to the strong sequential growth, in particular industrial drives and renewable energies › Ongoing recovery for industrial drives, driven by robust business optimism › Energy transition provides strong structural backdrop to several IPC target areas (renewables; energy storage; EV charging)

Revenues Segment Result Margin Book-to-bill [EUR m] [EUR m] 787 759 779 757 209 197 681 184 2.5* 167 143 1.9 27.5% 1.6 25.3% 23.4% 22.1% 1.2 1.2

21.0%

Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 FY20 FY20 FY21 FY21 FY21 FY20 FY20 FY21 FY21 FY21 FY20 FY20 FY21 FY21 FY21 *Calculated on a like-for-like basis, see notes › Sequential revenue decline caused by: › Temporary drop of demand for RF and sensor components for smartphones › Supply limitations resulting from constraints at our Austin and Melaka fabs and from external contract manufacturers › Strong demand across the entire range of power products - from server power stages to MOSFETs and ICs for battery-operated tools

Revenues* Segment Result* Margin Book-to-bill [EUR m] [EUR m] 333 335 329 346 312 3.4**

2.6 2.6 45 47 39 42 30 1.1 12.5% 12.6% 13.4% 13.6% 0.8 9.1%

Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 FY20 FY20 FY21 FY21 FY21 FY20 FY20 FY21 FY21 FY21 FY20 FY20 FY21 FY21 FY21 **Calculated on a like-for-like basis, see notes › Some limited supply improvements and higher project business in identity solutions supported quarterly revenue growth › Brisk demand for general-purpose MCUs, Wi-Fi and Bluetooth components and security solutions › Ongoing design-win momentum for smart and connected devices

Gross profit R&D SG&A

[EUR m] Gross profit as reported [EUR m] R&D expenses [EUR m] SG&A expenses Gross margin as reported R&D expenses as % of revenue SG&A expenses as % of revenue 1.065 985 972 376 333 341 328 342 793 321 308 316 308 311

587 37.4% 36.0% 39.1% 31.8% 14.8% 13.8% 14.5% 27.0% 12.4% 12.7% 12.6% 12.4% 11.8% 12.1% 12.6%

Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 FY20 FY20 FY21 FY21 FY21 FY20 FY20 FY21 FY21 FY21 FY20 FY20 FY21 FY21 FY20 Therein non-segment result charges Therein non-segment result charges Therein non-segment result charges [EUR m] [EUR m] [EUR m] 193 118 75 89 74 8 11 8 4 6 79 68 60 58 60 Adjusted gross margin 35.9% 36.6 % 40.3% 39.3% 41.8%

25%

15%

-5% FY17 FY18 FY19 FY20 Q3 FY20 Q4 Q1 FY21 Q2 Q3

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 27 20 19 15 18 13 8 -11 EPS basic

Q3 FY20 Q4 Q1 FY21 Q2 Q3 EPS adjusted

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)

Working capital* Inventories [EUR m] [EUR m] [days] 2,215 2,052 1,955 1,937 2,053 1,505 1,007 993 945 855 126 109 107 101 112

Q3 FY20 Q4 Q1 FY21 Q2 Q3 Q3 FY20 Q4 Q1 FY21 Q2 Q3 Inventories DIO* Trade receivables Trade payables [EUR m] [days] [EUR m] [days] 1,277 1,348 1,160 1,127 1,273 1,114 1,196 1,155 1,237 1,091

54 53 54 58 61 36 34 31 36 33 Q3 FY20 Q4 Q1 FY21 Q2 Q3 Q3 FY20 Q4 Q1 FY21 Q2 Q3 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 1.5bn -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% ~14.5% 12.8% 14.5% 12.9% 14.7% ~14.1% 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

3,863

3,450

3,444

3,334 3,227

Q3 Q4 Q1 Q2 Q3

FY20 FY21

2,945

6,808

6,703 3,369

6,859 3,415

7,033 3,806

- -

4,296 7,746

- -

Eurobond (Mar 2022) [EUR m; US$ m; nominal values] Term loans (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) Hybrid bonds* (Jan 2025, Jan 2028) US PP 2021 Notes (Jun 2027, Jun 2029, Jun 2031, Jun 2033)

$350 $1,110 €750 €750 $382 * €600 €750 €600 €650 €500 $365 $350 $350 $350 $350 $235 $250

2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033

Graph excludes pre-existing Cypress convertibles of ~$382m repayment value, maturing latest 2022, and additional debt with maturities between 2021 and 2023 totaling €6m. * 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

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

5 Oct 2021 London // virtual Infineon Capital Markets Day “IFX Day 2021”

10 Nov 2021* Q4 FY21 and FY 2021 Results

* preliminary

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 = 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. Like-for-like calculation in Q3 FY21: In the light of continued strong order intake, Infineon has temporarily switched from automatic to manual order confirmation. As a result, comparatively fewer orders are being confirmed. To provide a comparable view, the book-to-bill figure has been adjusted by assuming the same confirmation rate of newly received orders as in the previous quarter.

ESG footnotes: 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.

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

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

CSS Business Update Call PSS Business Update Call Thomas Rosteck Andreas Urschitz 3 March 2021 1 July 2021

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

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]