Investor and Analyst Call - Infineon

Investor and Analyst Call 12 June 2012

Peter Schiefer Division President Power Management & Multimarket (PMM)

Table of Contents

Overview

Growth Drivers and Market Opportunities

Mobile Devices & Cellular Infrastructure

Copyright © Infineon Technologies 2012. All rights reserved. 12 June 2012

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.

Summary

Power Supplies (SMPS) & DC/DC Conversion

Copyright © Infineon Technologies 2012. All rights reserved.

Europe NAFTA Japan APAC

Power Management & Multimarket (PMM) at a Glance

12 June 2012

[EUR m]

Revenue split by region*

Top customers

* Based on revenues by fulfillment region from 1st half FY2012.

Q1 F

Y09

Q1 F

Y10

Q1 F

Y11

Revenue and Segment Result development

Q1 F

Y11

237 242 268 256 222 227

55 54 69 64 40 32

23% 22% 26% 25%

18% 14%

0%

10%

20%

30%

0

100

200

300

Q1 FY11

Q2 Q3 Q4 Q1 FY12

Q2

PMM rev [lhs] PMM SR [lhs] SR margin [rhs]

http://www.analogictech.com/uploads/pressrelease/174.jpg


There are Seven Globally Defined Focus Application Segments for PMM

12 June 2012

Lighting

Mobile Devices

Smart Grid &

Periphe-rals

SMPS

Solar & Energy Storage

Power Conversion

and RF Applications

Computing DC-DC

Cellular Infra-

structure

More than 80% of Revenues Driven By Seven Major Applications

Revenue split by major application segments*

* Expected revenue split for FY 2012.

12 June 2012

SMPS

Mobile Devices

Computing DC-DC


Cellular Infrastructure

Smart Grid & Peripherals

Lighting


Highlights

7%

8%

8%

8%

9%

IR

Vishay

Toshiba

STMicro

Infineon

Power discretes 2010*

* Source: IMS Research „Power Semiconductor Discretes & Modules“, August 2011.

Infineon„s Market Share for Power Discretes and Modules

12 June 2012

Innovative and optimized chip process technologies.

Tailored assembly and module technology.

Leading-edge manufacturing, e.g. 300mm power.

3%

13%

14%

20%

26%

Hitachi

Fuji Electric

Semikron

Infineon

Mitsubishi Electric

Power modules 2010*


8% 9% 11%

#5 #4

#3

2006 2008 2010

Power MOSFET Position

Highlights

Market share track record and ranking**

10%

11%

11%

11%

13%

Vishay

Toshiba

Infineon

Fairchild

IR

MOSFETs 2010*

* Source: IMS Research „World Market for Power Semiconductor Discretes & Modules, Edition 2011“, August 2011. ** Source: IMS Research „World Market for Power Semiconductor Discretes & Modules, Edition 2008/2010.

Market Share Gain Track Record Discrete Power MOSFETS

12 June 2012

Market share gains over the last several years expected to continue via increased bundling of power discretes with power ICs.

Strong product portfolio and technology leadership is creating success in high margin markets, enabling reduction in gap to #1.


Table of Contents


Overview



Summary



Closer Look at Four Major Revenue Contributors Within PMM

12 June 2012

Lighting

Mobile Devices

Smart Grid &

Periphe-rals

SMPS


Power Conversion

and RF Applications

Computing DC-DC

Cellular Infra-

structure

Table of Contents


Overview



Summary



Smartphones and Netbooks Will Drive the Increase in Mobile Traffic

12 June 2012

Key Drivers

Global Mobile Data Traffic

Number of mobile devices sold increases.

Wider offer of consumer content by newer generation of devices.

Higher traffic generation by newer devices (smartphone generates data traffic equal to 24 basic feature phones).

Mobile network connection speeds increase.

Mobile Devices

Highlights

Products

Mobile Devices (Mainly Smartphones)

12 June 2012

First to deliver modules for simultaneous reception of both GPS and GLONASS signals.

ASM: outstanding CMOS RF technology.

TVS diodes: success with superior technology and competitive cost.

Addressed markets

Navigation (GPS, Glonass, Galileo, Baidu) LNA chip sets.

ASM (antenna switch module) CMOS switch.

ESD protection TVS diode.

Microphones ASIC, MEMS.


http://www.infineon.com/cms/de/product/rf/rf-mmic/gps/glonass/compass-lna/channel.html?channel=db3a304314dca389011540e0498815e9

Highlights

1%

2%

3%

17%

76%

Omron

Bosch

Analog Devices

Infineon

Knowles

Market position 2011*

* Source: IHS iSuppli, 2011. Market shares by silicon-based units. ** SNR: Signal-to-Noise Ratio.

Silicon MEMS Microphone

12 June 2012

Flexible business model combining Infineon‟s technology know-how in MEMS and ASIC design with customer expertise in acoustics and microphone packaging.

Leading edge roadmap to best-in-class SNR**, narrow sensitivity and high dynamic range for improved matching of multi-microphone and size reduction.

Market drivers

Trend to multi-microphone for noise-cancellation and stereo recording in smartphones.

Integration of additional functionality (e.g. digital interface).


Highlights

2%

8%

17%

18%

53%

Cree

Sumitomo

Infineon

NXP

Freescale

Market position 2011*

* Source: ABI Research RF Power Amplifiers October 2011.

RF Power Amplifier for Cellular Infrastructure

12 June 2012

Strong customer base (e.g. Ericsson, Huawei)

Roll-out of UMTS standard in emerging countries.

Upgrade to LTE standard in developed countries.

RF Power Amplifier


Table of Contents


Overview



Summary



Growth Drivers for AC/DC and DC/DC Power Conversion

12 June 2012

Significant importance of energy consumption

Globally, one new data center per week.

Energy consumption of up to 100 MW per data center (equal to ~80,000 households).

Highest efficiency of AC/DC and DC/DC power conversion is of utmost importance.

Social networks

Uploading of messages, photos, documents, audio files and videos is generating exabytes of data each year.

Cloud computing

Outsourcing of enter-prise computing power and storage.


Modern Data Centers are Very Focussed on Efficiency and are Setting Benchmarks

CoolMOS™

Example: Facebook's first company-owned data center in

Oregon uses 38% less energy compared to their other facilities

Courtesy of Facebook

Power supply

12 June 2012

Courtesy of Facebook

As per US Environmental Protection

Agency (EPA), the carbon footprint of

data centers will exceed the airline

industry in 2012.

SM

PS

AC

/DC

DC

/DC

DC AC PFC

Primary

Side

PWM

OR-ing

CoolMOS™, SiC thinQ!™

& digital Power ICs

OptiMOS™ OptiMOS™

PoL PoL

PoL PoL

DC Primary

Side

PWM

OR-ing

E-fuse

&

Power

Distribution

DC

OptiMOS™, Driver ICs, DrMOS & Digital Power Controllers

Synchronous

Rectification

Synchronous

Rectification

Highest efficiency key

for today‟s computing

applications.

Computing applications

typically range from 50

W to ~3 kW.

Highest Efficiency in Power Architectures

Through System Understanding

12 June 2012 Copyright © Infineon Technologies 2012. All rights reserved.

AC/DC and DC/DC

http://images.google.at/imgres?imgurl=http://www.pcgameshardware.de/screenshots/original/2009/08/507px-80_plus_Logo.svg.png&imgrefurl=http://www.pcgameshardware.de/aid,692457/80-Plus-Was-steckt-hinter-dem-Netzteil-Zertifikat/Netzteil/Wissen/bildergalerie/?iid=1174142&vollbild&usg=__89qfvXT7BYB1H7EJiVpnZuH91Q8=&h=600&w=507&sz=29&hl=de&start=2&um=1&itbs=1&tbnid=L645W61_1rFsOM:&tbnh=135&tbnw=114&prev=/images?q=80+&um=1&hl=de&tbs=isch:1

Advantages of Digital Power Management

Digital power Key Features

The “digital power” platform is a firmware based solution with fully integrated digital control loops.

Providing application flexibility and allows easy changes to meet rapidly changing market requirements.

Fast development (time to market) as most parameters can be modified „on the fly‟ via PC software.

Comprehensive and accurate control information accessible via controller‟s digital bus interface for advanced system power management.

Increased efficiency especially during light-load condition by changing control modes.

Dri

ve

r embedded

CPU

Driver

HV

startup

PWM

ADC

12 June 2012 Copyright © Infineon Technologies 2012. All rights reserved.

Table of Contents


Overview



Summary



Summary

PMM is one of Infineon‟s fastest growing segments.

Growth drivers are:

the need for ever higher energy efficiency;

digital power: digitally controlled AC/DC and DC/DC power conversion;

bundling of power discretes and power ICs;

social media, cloud computing;

mobile society (connectivity).

Infineon is best positioned at crucial products.

Book-Bill recovery in recent months bodes well for growth in current and future quarters.

Current foreign exchange trends are also helpful.

12 June 2012

12 June 2012

Financial Calendar

Date Location Event

31 Jul 2012* Q3 FY12 Results

29-30 Aug 2012 Frankfurt Commerzbank Sector Conference Week

26 Sep 2012 Munich Baader Investment Conference

14 Nov 2012* Q4 FY12 Results

15-16 Nov 2012 Barcelona Morgan Stanley TMT Conference

27-28 Nov 2012 Scottsdale, AZ Credit Suisse Technology Conference

* preliminary date


12 June 2012

Institutional Investor Relations Contact

Ulrich Pelzer

Corporate Vice President

Finance, Treasury & Investor Relations

+49 89 234-26153 [email protected]

Joachim Binder

Senior Director

Investor Relations


Holger Schmidt

Manager

Investor Relations



Investor and Analyst Call - Infineon

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