IFX Day 2011 Campeon – 07 June 2011 Jochen Hanebeck Division President Automotive (ATV) Table of Contents Overview Growth Drivers and Market Opportunities New Products Summary 07 June 2011 Copyright © Infineon Technologies 2011. All rights reserved. Page 2 Infineon Automotive is Driven by Three Major Growth Trends Infineon Automotive ─ We make cars … Clean Safe Best-in-class powertrain solutions for reduced emissions. Leading hybrid and electric drivetrain products. Energy saving electrification of relais and mechanical functions. 07 June 2011 Affordable Innovative sensors: Magnetics, MEMS and Radar. Optimized chipsets for low cost cars and E-bikes. Multicore architectures. Easy to integrate software and reference kits. SOC solutions. Highest safety standard compliance (SIL3 / ASIL-D). Copyright © Infineon Technologies 2011. All rights reserved. Local expert teams for emerging players. Page 3 Infineon Automotive Offers Complete Product Portfolio: Sensors, µC and Power Revenue split* by product category µC Sensors Power (discrete to high integration) incl. HEV/EV * Based on revenue from trailing 12 months period April 2010 to March 2011. 07 June 2011 Copyright © Infineon Technologies 2011. All rights reserved. Page 4 Infineon Automotive Focuses on Applications Powertrain, Safety and Body Revenue split* by application Powertrain Safety Body * Based on revenue from trailing 12 months period April 2010 to March 2011. 07 June 2011 Copyright © Infineon Technologies 2011. All rights reserved. Page 5 Above Pre-Crisis Sales Levels With Much Higher Profitability Revenue and Segment Result development [EUR m] Revenue Revenue split* by region Segment Result 391 324 311 316 312 333 340 354 279 238 206 25 36 189 206 21 21 37 51 54 58 59 74 -17 -56 Europe (incl. ROW) NAFTA APAC incl. Japan -65 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY08 FY08 FY08 FY09 FY09 FY09 FY09 FY10 FY10 FY10 FY10 FY11 FY11 Germany * Based on revenue from trailing 12 months period April 2010 to March 2011. 07 June 2011 Copyright © Infineon Technologies 2011. All rights reserved. Page 6 Table of Contents Overview Growth Drivers and Market Opportunities New Products Summary 07 June 2011 Copyright © Infineon Technologies 2011. All rights reserved. Page 7 Growth: Rising Global Car Production and Silicon Content Drive Market Global car production [units m] 68.8 65.7 5 11 5 11 13 15 71.8 57.4 5 7 9 87.3 82.8 7 10 14 7 9 15 96.3 8 9 16 8 9 16 7 7 13 29 32 35 38 40 26 19 20 21 22 23 2011 2012 2013 2014 16 20 22 20 16 19 2008 2009 2010 Europe 74.9 92.1 6 9 12 16 2007 2011 all-time high car production. CAGR(10-15) = 6% APAC North America Japan 2015 [USD bn] 301 307 282 268 244 2007 251 2008 247 2009 Auto Semi Market growth drivers: Powertrain, Safety and Body. Semi market by segment CAGR(10-15) = 4% 293 Semi content per car: USD 256 in 2010 versus USD 307 in 2015. ROW Semi value per car [USD per car] Almost all growth in car units out of APAC. 256 Powertrain Safety 5,1 Body 5,2 Infotainment 2010 2011 2012 2013 2014 4,4 2015 2010 3,5 5,2 7,8 8,9 8,2 CAGR +11% CAGR +12% CAGR +10% CAGR +8% 2015 Source: Strategy Analytics, May 2011 07 June 2011 Copyright © Infineon Technologies 2011. All rights reserved. Page 8 By Region, Main Growth Drivers are Emerging Markets and Recovery in NAFTA Automotive semiconductor market forecast [USD bn] CAGR(10-15) = 10% 29.6 27.1 31.7 3.3 Brazil, Russia and RoW CAGR +16% 8.4 APAC w/o Japan CAGR +15% 4.6 Japan CAGR +6% 6.7 NAFTA CAGR +10% 8.7 Europe CAGR +8% 24.3 20.9 19.0 2010 2011 2012 2013 2014 2015 Source: Strategy Analytics, May 2011 07 June 2011 Copyright © Infineon Technologies 2011. All rights reserved. Page 9 ICEs Still Bread-and-Butter Business; New Opportunities by HEV/EV Electromobility Classical car market Vehicle production Semi content HEV / EV Courtesy: Bosch TAM: ~ 5% p.a. 3-4% p.a. TAM: Courtesy: Tesla TAM: > 25% p.a. small units but high growth TAM: 8-9% p.a. ATV: 2%-pt p.a. ~10% p.a. Sources: CSM, Strategy Analytics (May 2011) 07 June 2011 Copyright © Infineon Technologies 2011. All rights reserved. Page 10 Table of Contents Overview Growth Drivers and Market Opportunities New Products Summary 07 June 2011 Copyright © Infineon Technologies 2011. All rights reserved. Page 11 New Infineon Automotive Products Low-cost powertrain U-Chip Our products make cars Affordable Fully integrated system IC for powertrain control. Dedicated for low-end car platforms and emerging market manufacturers. PROFETTM+ Family Scalable family for light control with self-protected switching. Cost efficient implementation of daytime running lights in India (obligatory by law). Bild Update J. Dienstuhl e-bike voltage regulators and µCs Cost efficient 8-bit µC's. Dedicated voltage regulators ensure smooth and efficient operation of e-bike motors. 07 June 2011 Copyright © Infineon Technologies 2011. All rights reserved. Page 12 New Infineon Automotive Products Long-range Radar platform Our products make cars Safe SiGe high integration enables cost efficient radar safety systems. Features like collision avoidance and automatic cruise control become more affordable. Bild Update J. Dienstuhl Airbag system-on-chip Cost efficient integration of several discrete products into one single chip. Enables systems to fulfill highest safety standards (ASIL). AURIX™ multicore microcontroller Multiple cores secure computations for highest Safety standard. Enhanced computing power allows very precise engine management for low fuel consumption. 07 June 2011 Copyright © Infineon Technologies 2011. All rights reserved. Page 13 New Infineon Automotive Products Transmission ICs Our products make cars Clean Seamless automatic gear shifting lowers fuel consumption. Most precise torque control enables powerful dynamics and highly comfortable driving. HEV/EV battery management systems Optimum use of Li-Ion technology maximizes driving distance between re-charging. Active balancing extends reach by 10% HybridPACK™ 3 Integrated power modules enable cost competitive HEV/EVs. Electrification of drivetrain reduces CO2 emission. 07 June 2011 Copyright © Infineon Technologies 2011. All rights reserved. Page 14 Power demand for ICE Power demand for eMobility 2 100 Output Power [kW] Output Power [kW] eMobility Requires a New Dimension of Power Semiconductor Performance 1.5 1 0.5 10 15 Typ. Operational Voltage Range [V] 07 June 2011 75 50 Full HEV 25 Mild HEV Charger 0 0 ICE = internal combustion engine. Battery Electric Vehicle 20 200 400 600 800 Typ. Operational Voltage Range [V] HEV = hybrid electric vehicle. Copyright © Infineon Technologies 2011. All rights reserved. Page 15 Paradigm Shift: IGBT's are the Injectors of Tomorrow Today Fuel Injectors in Combustion Engines Tomorrow IGBT's in Electrical Inverters Driver of vehicle performance: Mechanical components and subsystems Driver of vehicle performance: Semiconductor components and subsystems Assisted by semiconductors Assisted by mechanicals On-board electrical power: ~1 kW On-board electrical power: ~100 kW 07 June 2011 Copyright © Infineon Technologies 2011. All rights reserved. Page 16 Table of Contents Overview Growth Drivers and Market Opportunities New Products Summary 07 June 2011 Copyright © Infineon Technologies 2011. All rights reserved. Page 17 Infineon Automotive – Your Trusted Partner for Automotive Applications Global No. 2 for automotive semiconductors. Broad innovative product portfolio, leading edge technologies and system expertise. Disproportionately high exposure to fastest growing OEMs/Tier1s. Strategic partnerships on all levels of the value chain. Automotive Excellence: Most comprehensive quality program in the industry. Strong growth perspective driven by low-cost cars and HEV/EV. 07 June 2011 Copyright © Infineon Technologies 2011. All rights reserved. Page 18 Disclaimer This presentation was prepared as of June 7, 2011 and is current only as of that date. This presentation includes forward-looking statements and assumptions about the future of Infineon's business and the industry in which we operate. These include statements and assumptions relating to general economic conditions, future developments in the world semiconductor market, our ability to manage our costs and to achieve our growth targets, the resolution of Qimonda's insolvency proceedings and the liabilities we may face as a result of Qimonda's insolvency the benefits of research and development alliances and activities, our planned levels of future investment, the introduction of new technology at our facilities, our continuing ability to offer commercially viable products, and our expected or projected future results. These forward-looking statements are subject to a number of uncertainties, such as broader economic developments, including the sustainability of recent improvements in the market environment; trends in demand and prices for semiconductors generally and for our products in particular, as well as for the end-products, such as automobiles and consumer electronics, that incorporate our products; the success of our development efforts, both alone and with partners; the success of our efforts to introduce new production processes at our facilities; the actions of competitors; the continued availability of adequate funds; any mergers, acquisitions or dispositions we may undertake; the outcome of antitrust investigations and litigation matters; and the resolution of Qimonda's insolvency proceedings; as well as the other factors mentioned in this presentation and those disclosed at other occasions. As a result, Infineon's actual results could differ materially from those contained in or suggested by these forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements. Infineon does not undertake any obligation to publicly update or revise any forward-looking statements in light of developments which differ from those anticipated. 07 June 2011 Copyright © Infineon Technologies 2011. All rights reserved. Page 20