IFX Day 2010 Campeon June 24, 2010 Arunjai Mittal Division President Industrial & Multimarket (IMM)
Table of Contents What Is our Business about? What Is our Strategy? Why Do We Feel Confident about the Future? Page 2
Power SC & Modules Energy supply chain Power Semiconductors Play a Major Role in the Whole Electrical Energy Supply Chain Energy generation Energy distribution Energy consumption Page 3
IMM Achieves Three-fourths of its Revenues with Power Products IMM Revenue split (1H FY 2010) IMM Product range Industrial 51% Multi- Market 49% Power ~ 75% Non-Power ~ 25% Power modules Power discretes Power management ICs AF/RF diodes and transistors, Silicon microphone ASIC design solutions incl. secure ASICs for authentication and brand protection Page 4
Infineon Continues to Gain Market Share in Both, Power Discretes and Power Modules IFX market share Power Discretes Market Size in 2009: ~USD 8 bn 5.9% 7.3% 8.8% IFX market share Power Modules Market Size in 2009: ~USD 2 bn 17.0% 19.3% 23.0% 2005 2007 2009 Ranking CY 2009* 1.Infineon 8.8% =1.Toshiba 8.8% 3.STM 8.3% 4.Fairchild 8.2% 5.Vishay 7.9% 2005 2007 2009 Ranking CY 2009* 1.Mitsubishi 24.3% 2. Infineon 23.0% 3.Semikron 14.8% 4.Fuji Electric 9.3% 5.Toshiba 3.9% Source: IMS Research, Global Market for Power Semiconductor Discretes & Modules, 2004 2009; based on revenues. * 2009 figures based on preliminary report from May 2010 Page 5
Continuous Growth in Wind and Solar Power Is Expected Installed electricity capacity renewables [GW] Solar Power 600 400 Solar installations typically range from ~5 kw (on-roof PV) to ~50 MW (solar farm). Power semiconductor content in solar installations accounts for ~ EUR 25 to EUR 350,000. Products: CoolMOS TM, SiC diodes, discrete IGBTs and IGBT modules. 200 0 2007 2015 2020 2025 2030 2035 Solar: + 700 % (2007 2035) Wind: + 423 % (2007 2035) Source: EIA Energy Outlook 2010 Wind Power Wind mills typically range from ~2 MW (on-shore wind mill) to ~5 MW (offshore wind mill). Power semiconductor content in wind mills accounts for ~ EUR 6,000 to EUR 25,000. Products: IGBT modules, thyristor discs and modules and complete inverter stacks. Page 6
Motor Drives and Traction Are Propelled by Environmental Awareness and Urbanization Energy efficient motor drives Infrastructure Transportation Steel Water/Wastewater Suburban train Drives and traction applications typically range from few kw to 100 MW. Cement Logistics Metro Power semiconductor content accounts for ~ EUR 5 (small drives) to EUR 100,000 in a high speed train. Pulp/Paper Buildings Escalator Products: power discretes, power modules and stacks, driver ICs. Sources: Infineon AG, Siemens AG Page 7
DC/DC SMPS AC/DC Highest Efficiency in Power Architecture Is Key for Today's Computing Applications AC PFC Primary Side PWM Synchronous Rectification OR-ing DC Computing applications typically range from 50 W to ~3 kw. CoolMOS, SiC thinq! & Power ICs OptiMOS OptiMOS Power semiconductor content in computing applications range from EUR 1 to EUR 50. E-fuse & DC Power Distribution Primary Side PWM Synchronous Rectification OR-ing DC PoL PoL PoL PoL OptiMOS, Driver ICs, DrMOS & Digital Power Controllers Products: CoolMOS TM, OptiMOS TM, SiC products, driver ICs and digital power controllers (Primarion TM ). Page 8
Table of Contents What Is our Business about? What Is our Strategy? Why Do We Feel Confident about the Future? Page 9
Our Strategy in Short Efficiency improvement & System miniaturisation Technology leadership Excellent price-performance ratio at system level Page 10
Multimarket R on x A Industrial Examples of Applications, Innovations and Customers Applications Technology innovations Top customers Industrial drives incl. traction Renewables Others: Automation, Lighting, Medical,... 4 2 0 ev MV/cm W/cmK SiC Si Thin wafer technology Compound semi. e.g.: Silicon Carbide.XT package technology ABB, Alstom, Emerson, Enercon, Osram, Philips, Rockwell Automation, Schneider Electric, Siemens, SMA Computing x x CoolMOS TM breaks the physical limit Dell, Delta, HP, Consumer Communication time Primarion TM digital power solutions Silicon microphone LG Electronics, Microsoft, Nokia, RIM, Samsung, Sony Page 11
Table of Contents What Is our Business about? What Is our Strategy? Why Do We Feel Confident about the Future? Page 12
Electricity Continues to Gain Importance in Global Energy Consumption 2007 Global energy consumption 2035 Global energy consumption Quadrillion Btu 800 +50% 739 600 495 +70% 400 +90% 335 200 0 58 Delivered electricity 194 Energy used for electricity generation Total energy Electricity consumption to almost double until 2035. Efficiency improvement for generating electricity. 109 Delivered electricity Energy used for electricity generation Total energy Source: EIA - International Energy Outlook 2010-Highlights (http://www.eia.doe.gov/oiaf/ieo/index.html) Page 13
Higher Profitability with Less Revenue Revenue and Segment Result from Q1 FY08 to Q2 FY10 [EUR m] 291 276 279 Revenue 325 234 Segment Result 193 221 257 273 315 Breakdown by regions Europe (incl. ROW) NAFTA 14% 8% 26 23 29 Q1 FY08 Q2 FY08 Q3 FY08 56 Q4 FY08 2 Q1 FY09-7 Q2 FY09 9 Q3 FY09 31 44 59 Q4 FY09 Q1 FY10 Q2 FY10 Germany 22% 56% APAC incl. Japan Highlights IFX is No. 1 in power semiconductors since 2003. Only one loss making quarter over the last 40 quarters. Excellent growth opportunities with focus on energy efficiency. Page 14
R on x A Industrial & Multimarket Business Great results! x x Great technologies and products! time Great opportunities! Great future! Page 15
Disclaimer This presentation was prepared as of June 24, 2010 and is current only as of that date. This presentation includes forward-looking statements about the future of Infineon s business and the industry in which we operate. These include statements 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 potential disposition or closure of our ALTIS joint venture, 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 availability of funds; 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 described in the Risk Factors section of our most recent annual report on Form 20-F on file with the U.S. Securities and Exchange Commission. 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 forwardlooking statements in light of developments which differ from those anticipated. Page 17