Second Quarter FY 2020 Quarterly Update

Infineon Technologies AG Investor Relations Agenda

1 Cypress becomes part of Infineon

2 ESG: targets and achievements

3 Automotive

4 Industrial Power Control

5 Power & Sensor Systems

6 Digital Security Solutions

7 Selected financial figures

Semiconductor suppliers Power discretes and modules MCU suppliers 2019 total market: $428bn1) 2018 total market: $21.0bn2) 2019 total market: $17.5bn1)

Intel 16.5% Infineon 19.9% #1 Renesas 18.1%

Samsung 12.3% ON Semi 8.9% NXP 17.6%

SK Hynix 5.3% STMicro 5.4% Infineon 16.0%* #3 Micron 4.7% Microchip 12.4% Mitsubishi 4.8% Broadcom 4.3% STM 12.0% Qualcomm 3.4% Vishay 4.5% Texas Instr. 7.8% Texas Instr. 3.3% Toshiba 4.5% Samsung 1.5% Infineon 2.6% #8 Fuji 3.6% Nuvoton 1.3% STMicro 2.2% Renesas 3.3% Nvidia 2.2% Silicon Labs 1.3%

Kioxia 2.0% Rohm 2.6% Toshiba 1.2%

NXP 2.0% Semikron 2.5% Huada 1.1%

* pro forma figure 1) Based on or includes research from Omdia, "Annual 2001-2019 Semiconductor Market Share Competitive Landscaping Tool – Q4 2019 v2”, March 2020. 2) Based on or includes research from Omdia, "Power Semiconductor Market Share Database – 2018", September 2019. Results are not an endorsement of Infineon Technologies AG. Any reliance on these results is at the third party’s own risk.

Infineon is focusing on wearables Security ICs Wi-Fi standalone ICs and IoT but not addressing routers, 2018 total market: $3.2bn 2018 total market: 917m units PCs, notebooks, tablets.

NXP 24.8% Media Tek 16.2%

Infineon 24.3% NXP 14.9%

Samsung 17.4% Qualcomm 14.4%

STMicro 10.1% Broadcom 11.2%

CEC Huada 8.5% Infineon 9.3% (+0.1-pt) ABI Research, "Smart card & secure ICs", September 2019 ABI Research, “Wireless Connectivity Technology Segmentation and Addressable Markets", November 2019. MEMS microphones die supplier NOR Flash 2018 total market: 4.6bn units 2019 total market: $2.2bn

Knowles 42.8% Winbond 24.0%

Infineon 37.0% Macronix 23.7%

Omron 5.2% Infineon 19.5%

NJRC 4.7% GigaDevice 12.8%

MEMSensing 4.0% Micron 10.8%

Based on or includes research from Omdia, “MEMS Microphone Database Based on or includes research from Omdia, "Annual 2001-2019 Semiconductor 2019”, January 2020. Market Share Competitive Landscaping Tool – Q4 2019 v2”, March 2020.

MCUs System solution connectivity power management leader in high-growth low power Complementary security solutions markets: automotive, differentiated memories product scope sensor systems industrial and IoT software / eco-system

› more structural growth drivers › enlarged customer base Broader base › more balanced geographical mix › higher share of distribution

› combined FY19 revenue of approx. €10bn › top 10 in the semiconductor industry Larger › leading player in automotive, systems for power management and drives, sensor scale systems, connected secure systems, wireless combos, differentiated memories

› expected revenue synergy potential of › expected to be accretive to adjusted > €1.5bn p.a. from FY28 onwards EPS in FY21

Value › expected cost synergies of €180m p.a. › improved target operating model creation gradually ramping up over approximately – 9%+ revenue growth three years after closing – 19% Segment Result margin – 13% investment-to-sales

Coin cell-powered devices Battery-powered devices

Power supplies Information and data about the real world

Industrial IoT Connectivity

Software Digital Drives Real-world applications Ecosystem world

Smart Home

Value addition and optimized use of resources Consumer IoT

5G Automotive

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

lifestyle service wearables robot

personal cloud shaver, medical epilator, device toothbrush sensors power smart speaker microph. software and ecosystem motor air con

pressure connectivity light smart watch cooking, radar coil RF and washing, MCU power smart sensors heating, door lock 3D ToF AC-DC cooling current DC-DC surveillance security hardware auto camera telematics more ... security software more ...

auto printer head unit IoT control loop

game camera console

Body Cluster/ Chassis Powertrain ADAS/AD Infotainment

Sensors (magnetic, pressure, radar, current, 3D ToF, TrueTouch®, CapSense®)

MCU (Embedded Power ICs, MCU (AURIX™) PSoC™, Traveo™)

Memory (NOR Flash, SRAM, nvSRAM, F-RAM)

Power (MOSFETs, IGBTs, modules, driver ICs, power ICs, LDOs, PMICs, USB Type-C PD)

Connectivity Connectivity (USB) (Wi-Fi, BT, BLE)

Application examples

› HVAC › instrument cluster › braking › engine management › speed control › door control › in-cabin entertainment › steering › transmission › emergency braking › pumps › touch control › stability program › main inverter › blind spot detection › seat adjustment › in-cabin charging › suspension › auxiliaries › sensor fusion

› Advanced process nodes (28 nm and below) no longer offer embedded NOR Flash economically  trends towards off-chip memory › Infineon’s high-density NOR Flash is used as › boot-up memory and › instant-on program memory › Leader in high-density products (16 Mb – 4 Gb) › Semper™ Flash best positioned in functionally safety (ISO 26262 ASIL-B) and security for ADAS/AD › focusing on safety-critical applications in automotive, industrial, and communications

Automotive Industrial ICT Consumer › ADAS/AD › programmable logic › 5G infrastructure › ear pods › instrument clusters controller (radio heads) › digital camera › navigation systems › GPS board › gateways › SOTA updates › scanner, printer

Example: air-conditioning system

Indoor Unit Outdoor Unit What makes system solution attractive to customers? Wi-Fi / MCU MCU Bluetooth Dual Motor Connect Frontend Security Control + PFC › Ease of design

(Trust) Connectivity Outdoor Fan Fan Outdoor  combined portfolio covers all relevant system components Touch / Button Gate Driver LED / LCD MCU

PFC › Superior quality Audio out HMI IGBT / MOSFET  integrated solution ensures User Interface User MCU, power stage and Air Quality Sensor peripherals work perfectly IPM Proximity Radar MCU together

Heater MOSFET Main Control + Fan IPM

Motor Louver Gate Driver Compressor Main Control Main › Faster time-to-market  no additional integration or software development costs MCU Fan

Control IPM Supply (AC-DC) Indoor Fan Fan Indoor

Infineon heritage Cypress heritage

Processing Security

microcontroller eSIM secure element + NFC Memory cloud authentication NOR Flash F-RAM Device protection

Connectivity ESD protection battery authentication Wi-Fi/Bluetooth combo IC RF switches, low-noise amplifiers, antenna tuners Sensing pressure sensor IoT platform radar IC

ecosystem, software, services MEMS microphone

Human-machine interface Wireless charging

touch interface Cypress heritage 2 W inductive solution voice user interface Infineon heritage 2.5 W resonant solution

Revenue development [$ m] Gross profit [$ m], gross margin

575 559 250 216 44,0% 539 532 514 202 199 212 196 164 158 200 42,0% 229 178 170 40,0% 150

38,0%

100 38.2% 36,0% 37.6% 37.3% 37.7% 38.0% 354 411 401 345 34,0% 310 50

32,0%

0 30,0% Q1'19** Q2'19 Q3'19 Q4'19 Q1'20 Q1'19** Q2'19 Q3'19 Q4'19 Q1'20 MCD MPD gross profit gross margin

Non-GAAP operating income [$ m], Free cash flow*** [$ m] Non-GAAP operating margin 222

140 126 40,0% 114 118 120 108 101 100 111 117

20,0% 60 51 54 40 21.1% 20.4% 21.8% 21.1% 19.6%

0 0,0% Q1'19** Q2'19 Q3'19 Q4'19 Q1'20 Q1'19** Q2'19 Q3'19 Q4'19 Q1'20

Non-GAAP oper. income Non-GAAP oper. margin

* Unaudited financials based on US-GAAP; for further details see www.infineon.com/ir/cypress. ** Q1’19 results include the NAND Flash business which was divested in Q2’19. Revenues of the NAND Flash business in Q1’19 were included in MPD. *** Free cash flow is calculated as net cash provided by (used in) operating activities, less net of acquisitions and sales of property, plant and equipment.

Infineon_old Cypress Infineon_new

DSS 1) DSS 8% ~14% DSS PSS ATV ~35% ATV PSS ATV 31% 43% ~55% ~27% ~45%

IPC PSS IPC 18% ~10%

revenue by segment by revenue ~14%

› PSoC › Traveo › USB Type-A › general purpose MCUs › Automotive PSoC › IoT platform: ecosystem, › USB Type-B › NOR Flash software, services › USB Type-C › connectivity (Wi-Fi, › SRAM Bluetooth, Bluetooth Low › USB Power Delivery major product groups product major Energy, combos) › F-RAM

1) in the 12-month period ended March 2020

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

€180m €1.5bn

G&A €1bn S&M R&D

COGS

FY21e FY22e FY23e* FY22e FY25e FY28e (A) (B) COGS › Procurement for materials and manufacturing services (A) Near-term revenue synergy ramp up › Improved customer access and cross-selling OpEx › Optimize Cypress digital marketing potential to address › R&D: Optimize portfolio, reduce overhead revenue opportunities and grow customer numbers › S&M: Efficiency gains in account coverage › G&A: Optimize corporate service providers (B) P2S for long-term revenue synergy ramp up › Sensor systems and connectivity in IoT applications Expected integration and restructuring costs › wireless connectivity in automation equipment equivalent to ~1x cost synergies one-off over time › Security-hardened controllers and connectivity

* Expected cost synergies of €180m p.a. gradually ramping up over › systems for power management and drives approximately three years after closing. Ramp progression adjusted for › differentiated memories in mission critical applications later closing and COVID-19 implications.

Target Operating Model

Infineon financial performance to approach targets as integration progresses

9%+ Revenue growth (up from “9%”)

19% Segment Result margin (up from “17%”)

13% Investment-to-sales (down from “15%”)

Phase 1 Phase 2 Phase 3 (16 Apr 2020 onwards) (2023+) (2025+)

› highest priority: › have streamlined global shared › build on full leverage of revenue ensure stability of Cypress’ service center set-up in place synergies business performance and standalone operation › generate sustainable › launch new wave of P2S procurement effects products › harvest one-time cost synergies (e.g. delisting) and overhead › have aligned and prioritized › identify additional adjacent and savings product roadmap with joint P2S completely new target concepts in place applications to fuel longer-term › share existing IP and R&D growth roadmaps to cancel/avoid › establish one interface to the redundant development efforts customer (OITC)

› launch customer portfolio management Continuous implementation of planned cost and revenue synergy measures, and kick-off G2M push e.g. harvesting early cross-selling opportunities, streamlining opex structures, programs optimizing manufacturing footprint

› Full commitment to new target operating model › Several tools in place to track and measure the progress of the integration

2020-06-05 Copyright © Infineon Technologies AG 2020. All rights reserved. 16 After successfully completing the equity part of the refinancing, focus will now shift to the debt part › Arranging and syndication of acquisition facility  2019 › Initial equity de-risking in two steps: › €1.5bn via ABB  › €1.2bn via dual-tranche hybrid bond  › Drawdown of acquisition facility and usage of raised funds  2020 › Investment grade rating of BBB- by Standard & Poor's  › Completion of equity part via €1.0bn ABB  › Refinancing of remaining acquisition facility with maturities from March 2022 to June 2024 through debt capital markets › Liquidity: keeping gross cash target of €1bn plus at least 10% of NEXT combined revenue › Deleveraging: return to target level ≤ 2x gross debt / EBITDA over mid-term

Pre closing Post closing Acquisition financing Assumpt.: all pre-existing Cypress debt paid off

Infineon per 31 Mar 2020 [EUR bn] Infineon per 31 Mar 2020 [EUR bn] Sources [EUR bn] gross cash 4.6 gross debt1) 1.5 gross cash 2.9 gross debt 8.4 Acquisition financing facilities net debt 5.5 net cash 3.1 − bridge 3.9

− term loan 3.0 Post ABB May 2020 (€1bn) Cypress per 29 Mar 2020 [EUR2) bn] Infineon gross cash 2.5 ABB proceeds used to pay off debt gross debt gross cash 0.8 1.0 total 9.4 Infineon per 31 Mar 2020 [EUR bn] reported gross cash 2.9 gross debt 7.4 gross debt Uses [EUR2) bn] effective3) 1.3 net debt 4.5 Cypress shares4) 8.1 net debt effective 0.5 Cypress gross debt effective 1.3 › net debt/EBITDA: 2.0x total 9.4 › gross debt/EBITDA: 3.2x

1) does not include hybrid bond; considered as equity under IFRS Aggregated unaudited combined EBITDA, 2) based on an exchange rate of $1.0977 for €1.00 6) 3) assuming conversion values of Cypress convertible instruments 12-month period ended March 2020 : €2.3bn 4) excluding stock options and accelerated vested restricted stock units (RSU) 5) Cypress FCF calculated – in alignment to the FCF definition of Infineon – as total of net cash provided by operating activities and net cash used in investing activities › On an aggregated unaudited basis, Infineon and 6) figure contains Infineon financial information prepared in accordance with IFRS as well as Cypress together generated FCF5) of €0.9bn in the Cypress financial information prepared according to US-GAAP. Neither US-GAAP / IFRS 6) conversion has been performed, nor purchase price allocation effects have been considered 12-month period ended March 2020

Outlook Q3 FY20* Outlook FY20*

~ €8.4bn Revenue €1.9bn to €2.3bn +/- 5%

At the mid-point of the revenue guidance: At the mid-point of the revenue guidance: Segment Result positive mid-single digit margin percentage ~12%

Investments in FY20 €1.2bn – €1.3bn**

D&A in FY20 ~€1.0bn***

* Based on an assumed average exchange rate of $1.10 for €1.00 (previously $1.13 for €1.00). ** Formerly ~€1.3bn for Infineon standalone. *** Outlook does not yet include D&A on tangible and intangible assets from purchase price allocation of Cypress acquisition. On the other hand, outlook includes D&A on tangible and intangible assets from purchase price allocation of about €60m, primarily to International Rectifier.

ATV IPC PSS DSS

EMS partners Distribution partners

1 Cypress becomes part of Infineon

2 ESG: targets and achievements

3 Automotive

4 Industrial Power Control

5 Power & Sensor Systems

6 Digital Security Solutions

7 Selected financial figures

We contribute a CO2 reduction of more than 54 million tons

Our net ecologic CO2 benefit is equal to…

The average annual 48,700 fully occupied flights The savings of a 1,795 km2 electricity consumption of of an Airbus A380 from photovoltaic powerplant.3) about 86 million people Munich to Singapore.5) living in Europe.4)

For footnotes please 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 (PFCs)1) is one of the most important measures avoiding direct emissions.

Normalized PFC emissions rate

in tons of CO2 equivalent per m² wafer area

2.2 2.2 2.2 2.2 2.2 1.6 1.7 1.4 1.2 1.2 Infineon

WSC 2020 target

2015 2016 2017 2018 2019 Historically, Infineon's normalized emission rate has been below

WSC 2020 target of 2.2 tons of CO2 equivalent per m² wafer area.

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

Rating/Score Scale Date

MSCI ESG AA CCC to AAA 02/2020

B climate scoring CDP F to A 02/2020 B- water scoring 98th percentile Ecovadis 0 to 100 11/2019 “Gold” award 79 DJ Sustainability™ Dow Jones Sustainability Index 0 to 100 09/2019 World Index listing Ethibel Sustainability Index Index member - 09/2019 Excelence Europe” C+ ISS-Oekom D- to A+ 07/2019 Prime Status

FTSE4Good Index Index member - 07/2019

Euronext Vigeo Eurozone 120 Index Indices member - 06/2019 Euronext Vigeo Europe 120 Index 76 Sustainalytics 0 to 100 03/2019 “Outperformer” level

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 2019 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 2018 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.

Automotive semiconductors 2019 total market: $37.2bn

Cypress Infineon 11.2% 2.2% 13.4% › Cypress contributed 2.2%-points to the combined automotive semiconductor market share of 13.4% NXP 11.3% › Cypress contributed 6.1%-points to the combined Renesas 8.7% automotive microcontroller market share of 16.2% TI 8.1% › Infineon is the #2 automotive memory supplier with a market share of 13.2% (total contribution STMicro 7.6% by Cypress, mainly NOR Flash)

Sensors Microcontrollers Power

Bosch 14.1% NXP 27.2% Infineon 25.5% Infineon 13.5% Renesas 27.0% STMicro 13.9% Cypress ON Semi 8.0% Infineon 10.1% 6.1% 16.2% Bosch 9.1% NXP 7.0% TI 9.8% TI 8.2% Melexis 6.7% Microchip 6.6% ON Semi 5.4%

Source: Strategy Analytics, "Automotive Semiconductor Vendor Market Shares v2", May 2020. The acquisition of Cypress by Infineon closed on 16 April 2020. The market shares for 2019 shown here are the combined market shares of Infineon and Cypress based on their individual figures.

CO2 emission development and regulations for main regions

200 Japan 2020: US 2020:

122 g CO2/km* 125 g CO2/km

150

No CO2 reduction since 2016! Necessity for significant improvements increases continuously! 100 China 2020 : EU 2021: -15% 117 g CO /km 2 95 g CO /km -37.5% 2 EU 2025:

81 g CO2/km 50 actual EU 2030: 59 g CO /km enacted CO2 reduction of 37.5% will drive BEV/PHEV 2 proposed share towards ~40% of all cars sold in EU in 2030!

emission values [g/km],valuesNEDC tonormalized emission 0 2

2010 2015 2020 2025 2030 CO US Japan China EU

* Japan has already met its 2020 statutory target as of 2013 Source: ICCT (www.theicct.org), August 2019

2019 average xEV semiconductor content by degree of electrification

48 V / MHEV FHEV / PHEV BEV

$29 $785 $37 $775 $305 $350

$90 $0 $531

$19 $19 $62 $5 $62 $14 $14 $19

$355 $355 $355 $0

** **

µC µC

1 2 3 4µC 5 6 7 1 2 3 4 5 6 7 $1 $2 $3 $4 $5 $6 $7

tota

total

BoM

total

BoM BoM

ICE PT ICE

ICE PT ICE PT ICE

xEV

others

xEV xEV

Power**

Sensors

others others

Power** Power**

Non PT* Non

Sensors Sensors

Non PT* Non Non PT* Non

semi

semi semi

xEV

xEV xEV

xEV xEV 2018 0.3m vehicles 2.9m vehicles 1.7m vehicles 2020 2.3m vehicles 4.8m vehicles 3.2m vehicles 2025 20.6m vehicles 10.5m vehicles 10.2m vehicles 2030 30.0m vehicles 14.1m vehicles 15.8m vehicles

Source: Infineon; IHS Markit, Automotive Group, “Alternative propulsion forecast”, September 2019; Strategy Analytics, "Automotive Semiconductor Content", August 2019. * Non PT (non powertrain): average semiconductor content in Body, Chassis, Safety & Infotainment application segments. ** "power" includes linear and ASIC; "others" include opto, small signal discrete, memory

A failure-tolerant system with high availability relies on dependable key functionalities

Sense Interpret & decide Act Driver Dependable Sensors Dependable Computing Dep. Actuators

Camera Braking inside

Lidar specialized driving sensor domain Transmission Radar processor controller Steering Camera

Engine

sensor Automated car Automated Ultrasonic Microphone fusion central Matrix LED decision gateway authentication and

Secure communication Secure making

Dependable Power (power supply and power distribution)

More sensors required for any next level of automation

NCAP 5 Star, AD L2 AD L2+/L3 AD L4/L5 Automatic emergency brake/ forward collision warning Application* Parking assist Valet parking Lane keep assist Highway assist Highway and urban chauffeur

Corner MRR/LRR MRR/LRR Imaging Radar ≥ 3 ≥ 6 ≥ 10 # of modules** New: Corner; starting 2020 Corner Surround Camera ≥ 1 ≥ 4 ≥ 8 # of modules**

Lidar 0 ≤ 1 ≥ 1 # of modules**

› Ultrasonic › Ultrasonic › Ultrasonic Others › Interior camera › Interior camera › V2X

* Source: VDA (German Association of the Automotive Industry); Society of Automotive Engineers ** market assumption

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

NCAP 5 Star/AD L2 AD L2+ AD L3 AD L4/L5 L2 vehicles in 2020: ~6m L2+ in 2022: ~1m L3 in 2025: ~1.5m L4/L5 vehicles in 2030: ~4m L2+ in 2025: ~2.5m $55 $970 $300

$630 $190 $190 $560 High High

$190 $0 Low $230 High Low

$180 $250 $195 $30 $160 Low $90 $0 High

$40

Low

lidar

lidar lidar

BoM

BoM BoM

radar

radar radar

fusion

sensor

camera

camera camera

modules modules modules

modules modules modules modules modules modules

actuators

total

L2(2020) L3(2025)

total

total total

L2+ L2+ (2025) L4/L5(2030) Source: Strategy Analytics; Infineon. 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. Sense Interp. & dec. Act

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

10 MW

When turned on power =  current flows When turned off 1 MW  current is blocked

IGBT Module What counts? 100 kW

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

Silicon-based power switches Compound semiconductors

6,500 V

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

territory (OptiMOS™) 100 V roadmap ATV

80 V PSS PSS low-voltage MOSFETs 40 V MOSFETs (OptiMOS™) 20 V

* excluding drivers and control ICs

 Adjacent  Core

Controller Gate driver switch application

translates e.g. motion triggers low-power signal signal into control, power appropriate conversion gate input

 Grow in adjacent fields  Strengthen core › Invest into products for digital › Complement leadership in today's control loop including algorithms for discrete power and module portfolio with drives SiC and GaN

 New

 Broaden scope to new applications › System understanding and strong R&D force allow us to enter emerging power applications

1st Gen. CoolSiC™ Trench MOSFET 2nd Gen. CoolSiC™ Trench MOSFET is the leading technology today is in advanced development phase

1st Gen. with lowest losses 2nd Gen. will expand the lead

1,2 › Enhanced power handling capability by

1 25% – 30% [mJ]

on 0,8 TO247 3pin TO247 4pin › Enhanced safe operating area without

0,6 compromising quality

on losses, on E 0,4

- › Enabling SiC in further high volume applications Turn 0,2

0 Infineon Vendor B Vendor A Vendor C Infineon Vendor E Infineon IGBT SiC MOS SiC MOS SiC MOS CoolSiC™ SiC MOS CoolSiC™ Source: Infineon, datasheets on supplier web pages, September 2019. 2nd Gen. CoolSiC™ Trench MOSFET 1st Gen. CoolSiC™ Trench MOSFET will significantly enlarge the market has set the industry benchmark size for SiC MOSFETs

Process tools Clean room Process flow

› Design and production of › Clean room ready for › Integration of individual semi-automated process tool manufacturing by end of process steps into complete park completed in Dresden calendar year 2020 work flow

1/3 of the industrialization journey accomplished

Wafer splitting by 2022 Boule splitting by 2023

› Boules start to become available › Wafer for splitting are already available › Increases # of wafers by a factor of 2.0 in a › Increases # of wafers up to a factor of 2 first step, with potential for a factor of 2.6

Combining boule splitting and wafer splitting will make the most efficient process

Today SiC device market revenue › Acceleration of revenue growth › Leading Infineon technology with [US$ m] from 2023 onwards 1st Gen. CoolSiC™ Trench MOSFET 2500 CAGR(18-24): 29% › Already broad, fast growing portfolio

› System expertise and customer access 2000

1500 Strategic projects to support

growth 1000

› 2nd Gen. CoolSiC™ Trench MOSFET 500 › Cold Split: wafer and boule

› Manufacturing lines already capable of 0 processing 200 mm diameter 2018 2019e 2020e 2021e 2022e 2023e 2024e Source: Yole, " Power SiC 2019: Materials, Devices and Applications 2019", July 2019.

Discrete IGBTs IPMs IGBT modules** 2018 total market: $1.31bn 2018 total market: $1.68bn 2018 total market: $3.25bn

Infineon 37.4% (+ 0.7-pt) Mitsubishi 32.3% Infineon 34.5% (+1.7-pt)

ON Semi 9.6% ON Semi 18.9% Mitsubishi 10.4%

Fuji Electric 9.5% Infineon 12.0% (+1.6%-pt) Fuji Electric 9.7%

Littelfuse* 5.9% Fuji Electric 10.0% Semikron 8.0%

STMicro 5.4% Semikron 5.8% Vincotech 4.9%

Mitsubishi 5.0% Sanken 2.9% Hitachi 3.5%

Renesas 4.8% STMicro 2.1% Danfoss 2.4%

MagnaChip 3.8% Rohm 1.4% Starpower 2.2%

Toshiba 3.1% Microchip 0.6% Toshiba 2.1% Jilin Sino- Microchip ON Semi 1.6% Micro 0.5% 1.8%

* Littelfuse acquired IXYS Corporation in January 2018. Both companies are reported separately in 2017 and combined as Littelfuse in 2018. ** Including standard (non-integrated) IGBT modules and power integrated modules (PIMs) / converter inverter brake (CIB) modules. Source: Based on or includes research from Omdia, "Power Semiconductor Market Share Database 2018", September 2019.

Servo drives Low-power drives* Mid- and high-power drives

370 W 75 kW 370 W 500 kW 500 kW 10 MW

› high positioning accuracy › performance and reliability › safety › fast response with no overshoot › safety features › durability high reliability good price/performance ratio high reliability and low downtime Requirements › › ›

› robotics › pumps and fans › oil & gas industry › material handling › process automation › chemical industry

› machine tools › cranes (e.g. air compressors) Key applications Key › marine drives › cement mills

› CIPOS™ IPM › iMOTION™ › PrimePACK™ › Easy 1B › CIPOS™ IPM › IHM › Easy 2B › EasyPACK™ › IHV

Infineon products Infineon › EconoPACK™

*Low-power drives include compact drives, standard drives, premium drives and brushed DC drives.

Infineon is present at top-10* Global PV installations p.a.1 inverter manufacturers (2018)2

Mainland China Rest of World 1 | Huawei  CAGR(19-24): 7% [GW] 2 | Sungrow  171 176 163 3 | SMA 

140 44 45 4 | Power Electronics  42 125 3 109 41 5 | ABB  CAGR : 5% 35 (19-24) 6 | Sineng Electric  45 7 | TBEA Sunoasis  131 99 121 127 90 64 8 | SolarEdge  CAGR : 8% (19-24) 9 | Ingeteam  10 | KSTAR  2019 2020e 2021e 2022e 2023e 2024e * Infineon is serving the top-10 but not necessarily as a sole supplier 1) based on or includes content supplied by IHS, "PV Installations Tracker – Q1 2020"; April 2020; including off-grid 2) by shipped capacity in MW: based on or includes content supplied by IHS, "PV Inverter Market Tracker – Q4 2019“, October 2019 3) ABB sold its solar inverter business to Fimer in 2019

Infineon is present at top-10* wind Global wind energy installations p.a.1 turbine manufacturers (2019)2

Mainland China Rest of World 1 | Vestas  [GW] CAGR : 3% (19-24) 2 | Siemens Gamesa  77 3 | Goldwind  73 71 66 64 4 | GE  62 24 26 21 25 5 | Envision  CAGR : 0% 24 26 (19-24) 6 | Mingyang  7 | Nordex  45 53 47 46 8 | Enercon  36 40 CAGR : 5% (19-24) 9 | Sewind  10 | Senvion  2019 2020e 2021e 2022e 2023e 2024e * Infineon is serving the top-10 but not necessarily as a sole supplier 1) Wood Mackenzie Power & Renewables, "Market Outlook Update”, Q1 2020 2) Forecast of market shares by installations in MW: Wood Mackenzie, Power & Renewables, “Global wind turbine OEM market share forecasts”, October 2019

Core Adjacent New area

Courtesy: Shakti pumps Courtesy: Alstom new material solar pumps fuel cell

Courtesy: Courtesy: McKinsey Siemens AG EV charging energy storage eMarine

Courtesy: Lilium GmbH

collaborative robots eDelivery vehicles eAviation

Computing Industrial Consumer / Misc Communications

› data center › power supplies › eBikes, eScooter › smartphones › enterprise server › EV on-board charger › multicopter › mobile devices › PC, notebook › PV inverter › aviation › wearables › peripherals › power tools › LSEV › 5G massive MIMO › lighting › space › Industry 4.0 › gaming › Internet of Things › smart home

AC-DC (power) DC-DC (power) RF and sensors (non-power)

Discrete Power MOSFETs Power ICs 2018 total market: $7.58bn 2018 total market: $25.62bn

Infineon 27.7% (+0.7%-pt) Texas Instr. 15.9%

ON Semi 13.1% Infineon 8.3% (+0.8%-pt)

STMicro 8.0% Qualcomm 7.3%

Toshiba 7.0% ADI 7.1%

Renesas 7.0% STMicro 5.7%

Vishay 5.9% ON Semi 5.1%

A & O 4.5% Dialog 4.5%

Nexperia 3.8% NXP 3.7%

ROHM 2.2% Maxim 3.2%

Microchip 1.8% Renesas 3.2%

Source: Based on or includes research from Omdia, "Power Semiconductor Market Share Database 2018", September 2019. Discrete Power MOSFET market incl. automotive MOSFETs. Power IC market incl. automotive power ICs.

Adjacent Core

Controller Driver IC MOSFET

triggers low-power translates signal into high- signal to switch on current gate input switches on, current flows

Power management solutions reduce TCO

More efficient semiconductors Higher power-density › lower power consumption › more compact system designs › lower opex › lower capex

Interrelated trends for battery-powered applications

    From corded to From brushed DC Trend towards higher power New applications cordless power to brushless DC and higher battery voltage with trend towards tools motors "batteryfication"

BoM increase: Premium products: significant volume power semiconductor content ~15% higher ASP for increase increase up to 4x for DIY tools MOSFETs and drivers

In total battery-powered applications are a significant growth driver for PSS' power business

5G base station New!

Massive MIMO DC-DC (MOSFET, ICs)

5G mmWave antenna New! AC-DC, DC-DC (MOSFET, ICs) Cloud Computing AC-DC, DC-DC (MOSFET, ICs)

New! Base station power supply AC-DC, DC-DC (MOSFET, ICs) Fog Computing AC-DC, DC-DC (MOSFET, ICs)

› driver #1: massive growth of data and computing power › driver #2: higher number of base stations due to denser network › driver #3: ~4x higher power semiconductor content per radio board: from ~$25 for MIMO antenna to ~$100 for massive MIMO antenna array › driver #4: fog computing data center as a completely new market

Core Adjacent New area

Courtesy: Nissan 5G infrastructure on-board charger collaborative robots

hyperscale AI data center power tools smart speaker

new material home appliances class D audio

Various use cases are enabled by a small set of versatile core technologies

Courtesy: BMW Augmented Reality Voice-controlled devices Gesture control

Commercial and consumer multicopters Industrial robotics

Microphone Pressure Environmental 3D radar 3D ToF

World Highest No Best-in-class Best-in-class smallest form energy distortions resolution resolution 6x6mm² factor efficiency

Receive Measure clear audio Measure CO2 Biometrics 3D mapping height signals

Smart Eyes & Smart Ears, Smart Feeling, Smart Nose Sixth Sense

Key Use Cases – Examples

Advanced fitness Voice authentication Smog alarm Gesture sensing 3D AR gaming tracking

Face recognition & biometric identification

Human Machine Interface

2020-06-05 Copyright © Infineon Technologies AG 2020. All rights reserved. 59 Continuous stream of new topics aging and exiting maturity Emerging Growing Maturing SIM Card  Smart card form factor Pay TV  Embedded form factor Contact-based Payment TPM for Computing Government ID Embedded Secure Element (NFC) Transport Ticketing Authentication Contactless Payment eSIM for Automotive

Tokens for Industrial

TPM for ICT Security

TPM for Smart Home Trust for Smart Home eSIM for TPM for Automotive Consumer eSIM for Trust for Industrial Industrial

Source: Infineon time

Past: standalone IoT offerings from Now: combined IoT offerings going forward Infineon and Cypress

Cypress standalone offering: Best-in-class solutions - extending Infineon’s scope of applications and markets and attracting new customers with Software and Ecosystem new applications Connectivity Software and Ecosystem Cypress

MCU Connectivity Cypress

RF and MCU Power sensors Infineon standalone offering: Cypress

RF and Power Security hardware sensors

Security software Security hardware

Security software DSS offering

› 15+ years of investment in PSoC portfolio with > 2bn MCUs shipped Microcontroller › major advantages of programmability and low power consumption › integrated security as a key feature, especially for IoT

› excellent market reputation; 1bn+ wireless nodes shipped › proven interoperability between Wi-Fi and BT/BLE as well as monolithic Connectivity integration into MCUs › a leader in combos and software stack  key for IoT applications › leading security market player; unrivaled in security and contactless competence Security › full solution offered with software – making security easy-to-implement, especially for IoT devices

› industry-leading software and toolbox: WICED, MODUS Toolbox Software › software as a key differentiator and a major enabler for fast and easy implementation of MCU, connectivity and security solutions in IoT devices

› established developer community for hardware and software Ecosystem › fast, proven technical support infrastructure

1 Cypress becomes part of Infineon

2 ESG: targets and achievements

3 Automotive

4 Industrial Power Control

5 Power & Sensor Systems

6 Digital Security Solutions

7 Selected financial figures

Revenue development

[EUR m] 0% › Challenging market environment 4% › 4% q-q revenue increase 2,062 1,983 2,015 1,986 1,916 › Gross margin and segment result in Q1 benefited from a positive nonrecurring effect of approximate €36m

37.8% 37.0% 36.5% 35.5% 34.5%

332 317 311 297 274

Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20

Revenue Segment Result Gross Margin

ATV IPC PSS DSS [EUR m] [EUR m] [EUR m] [EUR m]

-3%

4% 875 888 893 829 846

639 617 591 598 593 3%

362 347 357 334 358 -1% 22.3 24.2 23.9 24.6 22.4 19.3 18.6 16.3 17.3 167 15.4 164 162 158 162 12.8 11.0 8.7 8.1 6.0 11.6 11.4 13.6 13.9 14.2 132 145 153 146 138 112 98 78 67 51 67 55 59 62 62 19 19 22 22 23 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 FY19 FY20 FY19 FY20 FY19 FY20 FY20 FY20 Revenue Segment Result Segment Result margin in %

› Q2 FY20: Q-Q increase › Q2 FY20: Growing › Q2 FY20: DC-DC power › Q2 FY20: Revenue mainly due to a stronger demand for wind turbines, supply products and growth in the areas of demand for comfort home appliances and mobile device authentication as well as electronics and industrial drives. Solar and components showed a payment and ticketing microcontrollers traction in line with strong performance previous quarter.

RoCE and adjusted RoCE

30%

20%

10%

0% FY16 FY17 FY18 FY19 Q2 FY19 Q3 Q4 Q1 FY20 Q2

Adjusted RoCE (excluding PPA, Deferred Tax Effects, RF power sale, Cypress) RoCE

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

[EUR cent]

22 24 23 EPS basic 20 19 16 17 13 13 13 EPS adjusted

Q2 FY19 Q3 Q4 Q1 FY20 Q2

Total cash return to shareholders [EUR m] 2,450 › Policy of sustainable 336 308 283 305 dividend payout 248 109 212 225 202 › Dividend for FY19: 26 167 164 130 €0.27 per share 173 129 20 › Dividend payout of €336m 62 38 35 on 25 Feb 2020 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 convertible bond buyback share buyback (via put options) dividends

Selling, General & Administration Research & Development* [EUR m]

243 241 236 243 222 230 212 214 214 204

159 157 156 12.7% 157 151 12.1% 11.9% 12.1% 11.2%

10.8% 10.8% 10.7% 10.6% 10.6% 55 57 63 53 58

Q2 FY19 Q3 Q4 Q1 FY20 Q2 Q2 FY19 Q3 Q4 Q1 FY20 Q2

General & Administration Selling R&D % of sales

* In FY19, reported R&D expenses amounted to €945m, net of €111m of grants received and net of €125m of capitalized development costs.

Working capital* Inventories [EUR m] [EUR m] [days] 1,762 1,706 1,758 1,701 1,767 1,736 1,452 1,475 1,511 1,583

132 124 124 115 120

Q2 FY 19 Q3 Q4 Q1 FY20 Q2 Q2 FY19 Q3 Q4 Q1 FY20 Q2 Inventories DIO* Trade receivables Trade payables [EUR m] [days] [EUR m] [days]

1,128 1,079 1,089 891 848 888 879 809 923 883

66 61 60 58 52 40 38 39 38 40

Q2 FY19 Q3 Q4 Q1 FY20 Q2 Q2 FY19 Q3 Q4 Q1 FY20 Q2 Trade receivables DSO* Trade payables DPO*

* For definition please see page "Notes".

Investments* Depreciation & Amortization

[EUR m]

1,451

1,254 1.2bn – 1.3bn

1,022 ~1.0bn 945 ~60 861 826 833 812 87 785 760 103 140 129 114

18.1% 16.5% 14.5% 13.5% 14.2%  15.4% 13.1% 12.9% 12.8% 11.5% 11.3% 11.8% 11.9%

646 693 683 758 858 ~940

FY15 FY16 FY17 FY18 FY19 FY20e FY15 FY16 FY17 FY18 FY19 FY20e

Non-SR-related D&A Guidance % of revenue [rhs]

* For definition please see page "Notes".

Liquidity development

[EUR m]

1,531

1,537

1,556

1,535

1,900

1,549

333

2,223

1,882 3,435 3,779 4,859 3,328 4,588 3051 3,051

Q2 Q3 Q4 Q1 Q2 FY19 FY20

Gross Cash Debt Net Cash

› Q3 FY19: Includes the proceeds of €1.5bn resulting from the capital increase executed on 18 Jun 2019 in connection with the planned acquisition of Cypress › Q1 FY20: Proceeds from €1.2bn dual-tranche hybrid bond booked on 1 Oct 2019 › Q2 FY20: Dividend payout of €336m in February 2020

Glossary (1 of 2)

AC alternating current DPM digital power management

AC-DC alternating current - direct current eCall emergency call

AD automated driving ECU electronic control unit

ADAS advanced driver assistance system EPS electric power steering

AEB automatic emergency braking eSIM embedded subscriber identity module

AFS advanced frontlight system EV electric vehicle

AI artificial intelligence FPGA field programmable gate array

AR augmented reality 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

BoM bill of material HSM hardware security module

BT Bluetooth HST high-speed train

CPU central processing unit HW hardware

DC direct current ICE internal combustion engine

DC-DC direct current - direct current IPM intelligent power module

DIY do it yourself IVN in-vehicle networking

iPol image processing line PV photovoltaic

IRF International Rectifier PSoC programmable system-on-chip

IVN in-vehicle networking RF radio frequency

LCD liquid crystal display rhs right-hand scale

LED light-emitting diode Si silicon

LSEV low-speed electric vehicle SiC silicon carbide

LSPS LS Power Semitech Co. Ltd. SiGe silicon germanium

µC microcontroller SMPS switch-mode power supply SNR signal-to-noise ratio MEMS micro electro-mechanical systems SOTA software over-the-air MHA major home appliances SRAM static random access memory MIMO multiple input, multiple output micro- SW software vehicles using start-stop systems and limited recuperation hybrid TCO total cost of ownership mild- vehicles using start-stop systems, recuperation, DC-DC hybrid conversion, e-motor ToF time-of-flight

MOSFET metal-oxide silicon field-effect transistor TPM trusted platform module

OBC on-board charger UPS uninterruptible power supply

OEM original equipment manufacturer V2X vehicle-to-everything communication

PFC power factor correction VR virtual reality

PHEV plug-in hybrid electric vehicle VSD variable speed drive

Pol point-of-load 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.

Cover photography: Deutscher Zukunftspreis 2015, laureate Infineon, photographer Ansgar Pudenz, Hamburg (Germany).

Date Location Event

3 – 4 Jun 2020 Berlin  virtual dbAccess Berlin Conference

9 – 10 Jun 2020 Paris  virtual Exane 22nd European CEO Conference

4 Aug 2020* Q3 FY20 Results

Unterschleißheim 21 Sep 2020 Berenberg Goldman Sachs German Corporate Conference (nearby Munich)

22 Sep 2020 Munich Baader Investment Conference

6 Oct 2020 Call: ATV Business Update

9 Nov 2020* Q4 FY20 and FY 2020 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') * 90

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

DSO (days sales outstanding; quarter-to-date) = ('Trade receivables' / 'revenue') * 90

Please note: All positions in ' ' refer to the respective accounting position and therefore should be applied with the positive or negative sign used in the relevant accounting table.

IPC Business Update ATV Call Dr. Peter Wawer, Dr. Peter Friedrichs Peter Schiefer 7 May 2020 8 October 2019

https://www.infineon.com/pcim_presentaion https://www.infineon.com/atv_call

Sustainability Report 2019 IFX Day 2018 23 November 2019 Capital Markets Day London, 12 June 2018

https://www.infineon.com/sustainability_2019 https://www.infineon.com/ifxday_2018

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

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

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