Company Presentation August 2016 Infineon at a glance Employees Business Segments Industrial Power Control (IPC) 17% Automotive (ATV) 31% 41% Power Management & Multimarket (PMM) 11% Chip Card & Security (CCS) About 35,400 employees worldwide (as of Sep. 2015) Europe 14,533 employees Americas 3,682 employees Asia/Pacific 17,209 employees Revenue FY 2015 34 R&D locations 19 manufacturing locations Financials Market Position* [EUR m] 3904 13.5% 527 FY 12 Revenue 2016-08-02 5795 3843 Power Smart card ICs #2 #1 #2 Strategy Analytics, April 2016 IHS Markit, July 2016 IHS Markit, July 2016 4320 14.4% 15.5% 377 620 897 FY 13 FY 14 FY 15 9.8% Automotive Segment Result Margin Copyright © Infineon Technologies AG 2016. All rights reserved. 2 We make life easier, safer and greener – with technology that achieves more, consumes less and is accessible to everyone. Microelectronics from Infineon is the key to a better future. Part of your life. Part of tomorrow. 2016-08-02 Copyright © Infineon Technologies AG 2016. All rights reserved. 3 Infineon enables eco-friendly, connected and safe mobility Courtesy: AUDI Applications Efficient powertrain for combustion, electric and hybrid vehicles, charger station for electric vehicles, car safety, driver assistance systems, chassis and comfort electronics, authentication, mobile security, traction 2016-08-02 Copyright © Infineon Technologies AG 2016. All rights reserved. 4 Infineon enables efficient generation, transmission and conversion of electrical energy Courtesy: AUDI Applications Energy transmission and conversion, renewable energy generation, home appliances, power tools, power management (adapters, chargers, power supplies), LED lighting systems, mobile devices, industrial drives, industrial vehicles 2016-08-02 Copyright © Infineon Technologies AG 2016. All rights reserved. 5 Infineon enables security in the connected world Courtesy: AUDI Applications Internet of Things, Industry 4.0, mobile security, embedded security, trusted computing, machine to machine, (mobile) payment, SIM applications, transport ticketing, government identification 2016-08-02 Copyright © Infineon Technologies AG 2016. All rights reserved. 6 Top positions in all major product categories Automotive semiconductors Power semiconductors Smart card ICs total market in CY 2015: $27.4bn total market in CY 2015: $14.8bn total market in CY 2015: $2.72bn NXP Infineon Renesas STMicro Texas Instruments Infineon (incl. IRF) 14.2% NXP 18.6% Infineon 30.5% 24.8% 10.4% Mitsubishi 10.3% Fairchild 6.1% Samsung 16.2% STMicro 5.7% STMicro 15.1% 7.7% 7.0% Vishay 6.2% others 5.0% 13.3% Automotive semiconductors incl. semiconductor sensors Discrete power semiconductors and power modules Microcontroller-based smart card ICs Source: Strategy Analytics, April 2016 Source: IHS Markit, July 2016 Source: IHS Markit, July 2016 2016-08-02 Copyright © Infineon Technologies AG 2016. All rights reserved. 7 Leadership in system understanding will foster future growth and profitability Auto Power #1, system and technology leader broadest technology portfolio;#1 in SiGe; become #1 in base stations by 2020 Security system leader in automotive RF Competitive advantages 2016-08-02 Average-cycle financial targets Revenue Growth: ~8% Segment Result Margin: ~15% Investment-to-Sales: Leader in security solutions Copyright © Infineon Technologies AG 2016. All rights reserved. ~13% 8 The outlook for the global semiconductor market is cautious Global semiconductor market in billion $ Market size (revenue) Forecast revenue range Source: WSTS for historical data. Forecast: of WSTS, IHS Markit, Gartner, IC Insights; last update 25 July 2016 2016-08-02 Copyright © Infineon Technologies AG 2016. All rights reserved. 9 Financial Year 2015: Revenue Split by Segment FY 2015 Revenue: € 5,795m* Automotive € 971m € 2,351m 41% Chip Card & Security Industrial Power Control 17% Power Management & Multimarket 31% 11% € 666m € 1,794m OOS+C&E** € 13m * Including International Rectifier from 13 January 2015 to 30 September 2015 ** Other Operating Segments; Corporate & Eliminations 2016-08-02 Copyright © Infineon Technologies AG 2016. All rights reserved. 10 Q3 FY 2016 Revenue and Segment Result Growth [EUR m] +3% 1,586 1,598 15% 18% 14% 14% 16% 245 286 220 228 254 Q3 FY15 Q4 FY15 Q1 FY16 Q2 FY16 Q3 FY16 Revenue 2016-08-02 1,556 Segment Result 1,611 239 1,632 Segment Result Margin Copyright © Infineon Technologies AG 2016. All rights reserved. 11 Q3 FY 2016: Revenue, result and margin per segment ATV* IPC* [EUR m] PMM* [EUR m] [EUR m] +9% 621 CCS* [EUR m] -2% 670 676 613 614 517 535 510 496 509 +4% 0% 269 271 249 265 280 13% 17% 13% 14% 15% 19% 21% 16% 15% 16% 11% 14% 9% 10% 15% 172 181 173 180 172 20% 21% 20% 20% 19% 79 102 81 94 104 Q3 Q4 Q1 Q2 FY15 FY16 Q3 30 26 42 Q3 Q4 Q1 Q2 FY15 FY16 Q3 Revenue * 39 23 74 79 Q3 Q4 Q1 Q2 FY15 FY16 Q3 98 110 79 Segment Result 35 38 35 36 32 Q3 Q4 Q1 Q2 FY15 FY16 Q3 Segment Result Margin The business with XMC industrial microcontrollers developed by ATV and CCS was transferred to PMM and IPC with effect from 1 October 2015. Previous year’s figures have been adjusted accordingly 2016-08-02 Copyright © Infineon Technologies AG 2016. All rights reserved. 12 Tight customer relationships are based on system know-how and app understanding ATV IPC PMM CCS EMS partners Distribution partners 2016-08-02 Copyright © Infineon Technologies AG 2016. All rights reserved. 13 Automotive Segment – Making cars clean, safe and smart Safe Clean › Clean combustion engines › Efficient energy management › Collision avoidance › Electrified Drivetrain › Advanced driver assistance 2016-08-02 › Occupant and pedestrian protection Smart › Individual convenience › Secure connectivity, data integrity and privacy Copyright © Infineon Technologies AG 2016. All rights reserved. 14 Industrial Power Control Segment – Driving Industry and much more Drives › › › Energy efficiency Automation Higher productivity 2016-08-02 Home Appliances › › › Refrigerators Air conditioners Washing machines Traction Renewables › › › Wind power plants Solar power plants High-voltage direct current transmission (HVDC) Copyright © Infineon Technologies AG 2016. All rights reserved. › › › › (High speed) trains Locomotives Subway Light rails 15 Power Management & Multimarket Segment – Achieving more, consuming less Radio Frequency & Sensing Power Management Computing Lighting Charger Mobile devices Cellular infrastructure Gesture sensing High Reliability Space Aviation/ Defense Medical ICD Hi-Temp. /Heavy Industry XDP™ MOSFETs, Power ICs, RF switches, LNAs, Si-Mics, RF power, Radar ICs, Environmental Sensors 2016-08-02 Copyright © Infineon Technologies AG 2016. All rights reserved. 16 Chip Card & Security Segment is enabling security for the connected world Smart Cards › › › › Smart card payment Electronic passports and ID documents SIM cards for mobile communication Transport ticketing 2016-07-25 Embedded Security › Mobile device security and payment › Information and communications technology (ICT) security › Industrial and automotive security › IoT connected device security Copyright © Infineon Technologies AG 2016. All rights reserved. 17 Market-oriented business structure Applications Automotive CO2 reduction; Comfort electronics; Driver assistance systems; Security Industrial Power Control Charger station for electric vehicles; Energy transmission and conversion; Home appliances; Industrial drives; Industrial vehicles; Renewable energy generation; Traction; Uninterruptable power supplies Power Management & Multimarket Cellular network infrastructure; DC motors; HiRel (high-reliability components); LED and conventional lighting systems; Mobile devices; Power management (adapters, chargers, power supplies) Chip Card & Security Authentication; Automotive; Governmental identification documents; Healthcare cards; Internet of Things; Mobile communications; Payment systems incl. mobile payment; Secure NFC (Near Field Communication) transactions; Ticketing, access control; Trusted computing 2016-08-02 Copyright © Infineon Technologies AG 2016. All rights reserved. Customers Segments 18 Our global R&D network Reigate Leominster Warwick Tewksbury El Segundo Skovlunde Duisburg Warstein Regensburg Dresden Bristol Linz Augsburg Graz Beijing Bukarest Villach Seoul Shanghai San José Morgan Hill Pavia Neubiberg Torrance Le Puy Sainte Réparade Padua Manila Bangalore Singapore Chandler Malacca Irvine Ipoh Mesa 2016-08-02 Copyright © Infineon Technologies AG 2016. All rights reserved. 19 Worldwide manufacturing sites frontend and backend Morgan Hill San Jose Leominster Newport Dresden Kulim Beijing Wuxi Cheonan Tijuana Singapore Mesa Temecula Frontend 2016-08-02 Warstein Regensburg Villach Cegléd Malacca Batam Backend Copyright © Infineon Technologies AG 2016. All rights reserved. 20 Our global sales network Libanon Livonia Milpitas Kokomo São Paulo Leominster El Segundo Hayward Durham Raleigh 2016-08-02 Rotterdam Stockholm Bristol Duisburg Reigate Hanover Dublin Erlangen Paris Munich Madrid Vienna Barcelona Istanbul Frankfurt Zurich Stuttgart Moscow Warstein Espoo Marseille Milan Copyright © Infineon Technologies AG 2016. All rights reserved. Beijing Xi'an Seoul Shanghai Hong Kong Shenzhen Tokyo Singapore Nagoya Bangalore Osaka Taipei Melbourne, Blackburn 21 Corporate Social Responsibility (CSR) › CSR comprises our voluntary commitment in: Human Resources Management and Human Rights, Environmental Sustainability, Occupational Safety and Health, Corporate Citizenship*, CSR Supply Chain Management as well as Business Ethics. › Infineon entered the UN Global Compact as one of the first semiconductor companies already in 2004 and is voluntary committed to the 10 Principles. › Infineon is for the 6th time listed in the Sustainability Yearbook. › Infineon is continuously listed in the Dow Jones Sustainability Index since 2010 and for the first time in the Dow Jones Sustainability World Index in 2015 and thus is among the top 10% of the most sustainable companies in the world. › Infineon does not compromise in human rights and business ethics. › Infineon's products and solutions as well as our efficient resources management enable a significant net ecological benefit. *social engagement of companies. 2016-08-02 Copyright © Infineon Technologies AG 2016. All rights reserved. 22 Corporate Social Responsibility We are excellent in resources efficiency At Infineon, less is more -40% -21% About 40% less electricity consumed per square centimeter produced wafer than the global average About 21% less water consumed per square centimeter produced wafer than the global average -50% About 50% less waste generated per square centimeter produced wafer than the global average We use resources much more efficient in our production processes than the global average of the semiconductor industry. Basis for the calculations are the square centimeters processed wafer area in the front-end production and consumptions according to WSC definition. The information and data given in this document apply to the Infineon Technologies group, except for International Rectifier companies. 2016-08-02 Copyright © Infineon Technologies AG 2016. All rights reserved. 23 Corporate Social Responsibility We create a net ecologic benefit Emission Reduction enabled by our products and solutions around 36.5 million tons CO2 equivalents around 1.6 million tons CO2 equivalents CO2 burden1) Ratio around 1:23 CO2 savings2) Net ecological benefit: CO2 emissions reduction around 35 million tons 1) This figure considers manufacturing, transportation, function cars, flights, materials, chemicals, water/wastewater, direct emissions, energy consumption, waste, etc. and is based on internally collected data and externally available conversion factors. All data relate to the 2015 fiscal year. 2) This figure is based on internally established criteria, which are explained in the explanatory notes. The figure relates to the calendar year 2014 and considers the following fields of application: automotive, LED, PC power supply, renewable energy (wind, photovoltaic), drives as well as induction cookers. CO₂ savings are calculated on the basis of potential savings of technologies in which semiconductors are used. The CO 2 savings are allocated on the basis of Infineon market share, semiconductor content and lifetime of technologies concerned, based on internal and external experts' estimations. Despite the fact that CO₂ footprint calculations are subject to imprecision due to the complex issues involved, the results are nevertheless clear. The information and data given in this document apply to the Infineon Technologies group, except for International Rectifier companies. 2016-08-02 Copyright © Infineon Technologies AG 2016. All rights reserved. 24 Let's get connected CUSTOMERS INVESTORS 2016-08-02 PRESS CAREERS www.facebook.com/infineon www.infineon.com/linkedin www.google.com/+infineon www.infineon.com/xing www.twitter.com/infineon www.youtube.com/infineon Copyright © Infineon Technologies AG 2016. All rights reserved. 25