Ladies and gentlemen, on behalf of the Infineon management, a warm welcome to the IFX Day 2021. It has been a bit over three years since we met you at our Capital Markets Day in London in June 2018. A lot has happened at Infineon since then. Our revenue base has grown by EUR 3.5 billion, both organically and by the milestone acquisition of Cypress Semiconductor. Infineon now is a top 10 semiconductor company and a member of the EURO STOXX 50 index. What continues is that we provide innovative solutions to megatrends of society to make life easier, safer, and greener. Let's now look at the agenda for the coming three and a half hours. We will start with the big picture. Reinhard Ploss, CEO of Infineon, will set the scene and provide a comprehensive overview of market and technology developments, our strategy, and growth perspectives. Sven Schneider, our CFO, will add a first financial view. You will already have seen our leitmotif for today, electrification and digitalization creating sustainable value. Jochen Hanebeck, our COO of Infineon, will host a session on electrification. He will be joined by Constanze Hufenbecher, board member of Infineon since April, and responsible for digital transformation. You will get business views from the Division Presidents of IPC, ATV, and PSS, Peter Wawer, Peter Schiefer, and Andreas Urschitz. After a short coffee break, morning decaf in America, afternoon tea or cappuccino in Europe, and night espresso in Asia, we will continue with the digitalization session hosted by Helmut Gassel, Infineon CMO, together with Constanze and joined by the Division President of CSS, Thomas Rosteck, as well as Andreas and Peter representing PSS and ATV. In our fourth and final session, Sven, together with Jochen and all four division presidents, will talk you through Infineon's value creation and how we execute our target operating model. For the unlikely event that we are leaving any items open, there will be a Q&A session at the end. All nine speakers will be available to take questions from you. Needless to say, all of them are fully tested. You can ask your questions throughout the event by using the question box at the bottom of your screen or via email to ifxday@infineon.com. After the Q&A, Reinhard will wrap up our Capital Markets Day with closing remarks. Today's entire event will become available for replay, and we will provide the materials presented for download shortly afterwards. Enjoy an informative IFX Day 2021 with Reinhard now coming on stage. Also from my side, a very warm welcome to everybody online. It's a great pleasure to have you with us, even so we cannot meet in person. Alexander talked about Infineon and he said, "Let's have a coffee together." What I tell you, what we want to convey to you in the next three and a half hours, it is very clear you will not need any caffeine in order to be excited, to be energized. We have a fantastic story. We believe very much that the journey Infineon is on is a very successful one. Not very often we look into the future and think about what can we achieve. This many people claim. Let's think about what Infineon has achieved, what are the changes happened, and the base which we have in order to move forward. The Infineon growth story is very much based at the very beginning of the break of the century on being a technology-oriented company. Great technologies like CoolMOS, OptiMOS, and others were making it into the field. We were able to move from a high teens in the number or the ranking of power semiconductor to a clear number one with being technology-oriented. Already at that time, we recognized that this will carry us forward and will continue, but there are things we need to evolve from. We became a system integrator as a title, a system provider, and the next topic which we will be moving on is a solution provider. It's not only that we were able to have a constant growing revenue base, a constant outgrowing capability to the market. It is something that this was also based on the ability to change as we move forward. The company, Infineon, today is, to a large degree, still the only Infineon. At the same time, it's also not anymore the Infineon. We evolved. We will today talk about how we will move forward, how the evolution will be tailored and will fit to the new requirements. Many of the things which have been driven, and I will address this later, have always been around and were generating our energy, our way to move. Today, we are at a point where we believe we have a lot of elements which are important to differentiate. I mentioned technology had been the core, but it is very obvious if you only have one element you base your strategy on, that is pretty dangerous. Being able to base your strategy on multiple elements gives you a much higher resilience, and in order to outgrow the markets, this is also needed. Sooner or later, concepts get exhausted. Let's have a look in what are the key elements which are, for Infineon, the base in order to outperform the market. First of all, a topic which we talk about since quite a while, but this has become a real driving force for Infineon, system understanding and solution expertise. What is the customer having as a problem? Where is the customer heading to? How can we support the customer in order to be more successful? Technology take a while to develop, so we have to be ahead of the curve. All of these is around the idea of system understanding and solution expertise. It has been also driving us in order to complement our portfolio. Very important, we know what we do, and in some points, we are also having the desire to provide solution to the customer he has not thought of. The next point, which is of very high importance, is outstanding customer relationship. Being embedded in the customer, being desired by the customer is a key element of ours. We want that the customer is not making any decision without having thought about, "I should talk to Infineon first." Maybe he does not buy finally from us, but Infineon should be in the center of his thinking. How to? This we will hear over the course of today's presentation because there is a lot which we have to do in order to be in the center of this thinking of our customer in a new, in a digital time. The next point, of course, is we are extremely proud of quality and technology leadership. Many people say quality. Quality for me is a total thinking within the organization. We commit, we deliver. Even under these tight conditions of allocation, we do our best and while we cannot give all, but what we commit, we deliver. When you look at automotive, but even beyond, our customers really appreciate when you get a product, a technology from Infineon you can rely on. Technology leadership, that is where we started from. You see, it still lasts, and it will last for quite some time because we believe that innovation is key. This topic of innovation being a differentiator former times, technology innovation. Today, innovation in many domains, how we interact with the customer on the digital base. What is the software the customer requires? What are technology elements? What can we add in total system solution? They are very fascinating elements, and I do not want to mention them in detail now, even so, I'm absolutely enthusiastic, and you will hear about this later. There is more. Differentiation also comes from the fact how we manufacture. This is very clear that the Infineon manufacturing strategy has adopted significantly over time. Some parts we do not manufacture in-house anymore. We manufacture only where we can differentiate by manufacturing, and the value of it is very obvious in the current time. We are in full control of our investment channel, and we are also full in control about how and where to add capacity. It's a real advantage, and it's also something the customer appreciates because he knows Infineon is able to deliver. We, I would say, outperform others in providing capacity. Here you see it is put together. We stand on five strong pillars, which are circled around the customer value creation. We will see that these are working together quite nicely. For me, it's quite fascinating to see that the divisional aspect which we have and where we only were serving some markets in ATV. Now ATV is supporting the other divisions in order to serve automotive customer and vice versa. The capability of that company lies significant on its capability and culture to collaborate. Culture very much comes along the lines of where we think about what motivates us. There always has been the motivation, and at the very beginning it was slightly different, about energy efficiency. We can provide, and at that time, a lot of cost saving, but very soon, I can remember, we thought about the CO2 reduction. Climate change today is in the core of Infineon. It's driving what we do. Beyond that, the idea of resource scarcity. We always talk about getting more out of less. This topic is a very good example. It is a theme which will last. It's a theme which has driven us for the last 20 years and will continue to drive us in the future, I'm pretty sure, for more than 50 years. We as society, as a global society, have to be able to have a good life, a safe life, and a green life. This is only possible when we think about this topic which I just addressed. There is more to come that is driving us. The democratic and the social change, the aging society, the number of people living on this planet, all of this is another factor which requires to think about it. At the same time, it offers a lot of possibilities which we can address as the first topic. Similar to that, urbanization and with now the new style of working, maybe it's a slightly distributed urbanization. Nevertheless, there will be a lot of need in order to support in an environmental friendly, in a good living style, an urban society. These three have been driving us for quite some time already, and we added some years ago in the digital transformation, because we are very sure all of this cannot be resolved without using digital capabilities in order to get managed it. Therefore, we see two major areas coming along. The electrification and the digitalization. Now, electrification first. If you want to go CO2 low or free in the next step, there's no way but moving to electrical energy. Generating, harnessing, and using it efficiently is the absolute mandate, the must-haves we are taking care for. First of all, mobility. We want to have mobility as an individual or public transport, all of this. It will not go away. Infineon supports the transition of mobility based from CO2 related to no- CO2- based. This will give a lot of push forward. It will grow by a factor of nine up to 36 million of cars. The next is to generate it. A very impressive number. The photovoltaic installation will rise until 2030 by a factor of five, from 800 GW to 4,200 GW. We make that happen. You cannot connect by just plugging in the cable of the PV into the grid. You have to balance it. You have to connect the sources and the users of it. All of this is very important to look at. The next topic. It is the digitalization. Well, you may debate if this is really the key element. I tell you, yes, it is. Because if you cannot manage an autonomous driving car, you can manage a lot of machines, equipment, devices which act autonomous for the sake to support humans. This is what it is about. When you read currently about the missing number of truck drivers. Why? Not letting the truck drive automatically. First instance on the highway, moving on. Here more to come. I already think about when I retire and become pretty old. Well, still some years to go. I would be happy to have an autonomous car, which on a finger snap will come and pick me up. Very tightly connected to this is a topic of IoT. The Internet of Things will grow by a factor of 3.5x in the next five years, and we will go to 20 billion IoT connected devices. It's about generating value. It's not only about connecting a sensor. This is fine, but that's not enough. We have to move on from there. How do I generate value? How can I create, and how can I make that happen? Here you see these two topics will drive, and as I explained, they are derived from major long-lasting requirements, driving factors, translating in very concrete elements of electrification and digitalization, where we can drive things along the lines of what we can. Solution, technology, innovation, putting things together. This picture gives you just a glance. I don't go through in detail, but you will see it again and again. You have two axes, the green power topic and the connectivity topic. The moving up to this autonomous. I like this automated vacuum cleaner, if it would really clean everywhere and would not run between my legs. Fantastic. Why not? Moving on with this. There we can do a lot. We can really generate value. What you see, these are the topics to be addressed. These are only a small selection. When you see, we are not talking here basically a lot on single products. I'm not talking about MOSFETs. I'm not talking about microcontrollers or sensors. I talk about the problems, the topics which we solve. Of course, they are in. With this, we look at it. When you combine now this picture, many of these products we develop will serve the other one. It's quite interesting. The art will be how we will be using the topics or the product, the technologies we develop here. Just let's pick the silicon carbide. It was ramping up very quickly in industrial, now coming very strongly in automotive, moving to power supplies. One technology developed together and moving into. Here, extremely important moving forward. Many of these technologies matter. When you look at the milestones of electrification, this is something which I think is as important as the milestones in digitalization. We came from the CoolMOS, OptiMOS, pure MOSFETs. We launched this. We moved on. I can remember 1999, we were sitting together, a small team, still a lot of people are around here, and said, "We want to have 10% market share in this market." Looking back, the way we thought about being successful was not the way we finally achieved, but we dared. We made the transition. We changed the game. We continue to change the game. Yes, we launched silicon carbide very early, and we're a little bit late on the silicon carbide MOSFET. It doesn't matter. If you're a company who is willing to bite the bullet in order to catch up and have the capability. We are by far a number one capability and have the competence in doing so. With the acquisition of International Rectifier and SILTECTRA, we really moved on making a change in this. Similar with the digitalization. I do not go into the details, but of course, the key change here for the acquisition of Cypress. It was obvious to us. We need software, we need compute capability, and we need connectivity. Cypress really was the best fitting element, and I'm deeply impressed how the progress is together with the team, despite the fact that during all the integration phase, we could not meet. When you look what we have achieved, this is the base I believe that our claim moving into the future is a good claim, a real claim. Global leader in power, two times as big as the number two. An unmatched portfolio in this domain. Quality leadership and complementing this area of power semiconductor now with a very strong portfolio, gallium nitride, silicon carbide, but also silicon and a lot of the packages. We solve your problem in power. We do that also beyond. This picture gives you another glance on what we are doing. It is not only that we go with power. How can we put power together? Here it is. We think about customer system. We talked about those. I do not go into the detail. We think about the ecosystem, how it is put together. What is the software required to have full system functionality? Again, what is the base? This idea of P2S, putting things together, is along these lines. P2S is a generation, but same times also the pull factor in it. With this, we look back, as Alexander said, we have the IFX Day 2015. We talked a lot about structural growth drivers. The majority, which we have seen three years ago, is still there. It's continuing. What is really fascinating, more is added. Many of those, which are shown here, and I do not go into the detail because they will be highlighted later, these will continue to support our growth, our capability to outgrow the market, to innovate. When I talk about this, it's very much about how, and here it's quite an interesting picture. Think about where we come from, and now we can translate it to concrete elements, an intelligent world to come. What can we do there? What are the elements which we will be addressing in detailed market and the solutions to come? You see a lot is on the verge of the system. Very fascinating. I think with this, I want to conclude. Profitable growth journey since 1999. We have been evolving from a technology development company to a solution provider. We have been able to reinvent ourselves, to add elements, to harness a growth by a factor of 10x. We are very sure that what we have built up is the base in order to continue to grow. Continue to grow, I didn't say it at the first slide because I served it for that point, and I served it when I hand over to Sven. Growth is something which shows us and the capability to outgrow the market, that we have the right topics on hand. Growth is not enough. You have to grow profitability at the same time. Many of these topics which I have been addressing have helped us to become increasingly profitable. A journey which we have started some time ago, I haven't talked so much about numbers, but numbers matter because they show us if this is what we claim is coming true. I would say many of the numbers show that it is coming true what we have achieved, and the claim we have set ourselves will be supported quite well. With this, I want to conclude on the last point. A multitude of long-term structural growth drivers will enable to be more successful than the market. We have the ingredients to make this happen. We are set with all this, what we have done, especially with the acquisition also of Cypress, to generate more value to the customer and to the shareholders. The ability to innovate and bring this to the market. For me, an unbelievably fascinating story, and I'm very happy to listen together with you on the details. Before that, the numbers. Enjoy the rest of the presentation. Sven, it's your turn. A very warm welcome to everybody virtually from my side as well. Reinhard just alluded to the numbers. I mean, who is really interested in numbers if such a compelling story is told? I'm just kidding. Of course, you are, and we are as well. Looking a little bit into the numbers, you are all very well aware of our so-called target operating model, which summarizes the key parameters. The revenue growth of 9%+ per annum, the profitability level of 19%, and the investment to sales of 13%, all that through the cycle. How do our numbers compare to our model? With that, we want to first have a short look, and I can really cut it short, into the fiscal year, which just ended last week, fiscal 2021, before we go into some guidance for 2022. Fiscal 2021, and stepping back a year from now, looked like a difficult year. Nobody was really certain how steep the recovery will be. Will it be V-shaped? Will it be a U-shape? Will it be different? We had to, and that's of course, a positive problem, we had to upgrade our guidance a couple of times to a better guidance towards the year. Now look at these numbers, please. We came out as guided. Around EUR 11 billion in revenues, above 18% in profitability, around EUR 1.6 billion in investments, with a pretty healthy free cash flow generation of EUR 1.5 billion, which gives us a lot of headroom and speed with regard to deleveraging, we will come back to that in session value creation. Now, even more interesting probably for you is the year ahead. We cannot organize a capital market today and not talk about 2022. Although in a normal period, we would be in such a position only in November. Now having a look at these numbers. We are forecasting a pretty strong growth. We call it a mid-teens percentage increase compared to the EUR 11 billion for the year 2022. Let's be very clear. This is a number which is capacity constrained. It's not a demand constraint, but this is our view of the current capacities we have in-house, and we will hear a lot about it from Jochen in a second, and of course, also the external capacity from foundries. Mid-teens growth on the top line. The profitability level will be increased to an around 20% level. Investments, you have seen that probably over the course of today already, will be increased significantly to EUR 2.4 billion to now lay the foundation for the future growth. Again, you will hear a lot about not only the growth drivers, but the investment priorities for the next fiscal year. Of course, we will have a close look to the free cash flow. Despite a EUR 2.4 billion number in investments, we will still generate EUR 1 billion of free cash flow. By the way, all these numbers are based on a euro/dollar exchange rate of 120. With that, I would already be at the end of my sneak preview with regard to the numbers. There will be one additional information that's a spoiler regarding a dividend proposal. For that, please stay tuned till session four. This concludes the session one, and now the session two will start. Be electrified by session two called Electrification, hosted by Jochen Hanebeck. Welcome to this second session of our Capital Markets Day 2021. This session is about electrification. Electrification is key to achieve the Paris Climate Agreement. We are not on track. Current projects say that global temperature will rise by 2.7 degree, locally, regionally, much higher numbers with potentially catastrophic effects. We have to act. We cannot afford to act in sequence as those suggest who reason about the CO2 balance of a current electric car powered by non-green electricity. We have to pull all levers now and simultaneously in order to manage to cope the CO2 emissions globally for the decades to come. This is where Infineon comes into the picture. Electrification is our home turf. We are the global market leader for power semiconductors in all categories by a margin. We can help to save this planet, and that makes us proud, drives us, and gives us purpose. In this session, you will hear now about the trends in power generation, transmission, storage, energy saving, and conversion of fuel consumption. With this, I hand over to Peter Wawer talking about generation and transmission. Have fun. Thank you very much, Jochen. Infineon is instrumental for supporting the whole energy conversion chain, from generation, predominantly PV wind, over transmission and storage, finally to consumption. For example, data centers, industry applications, e-mobility. While these are the things that drive electrification looking forward, they at the same time generate business opportunities at large scale. Let me drive your attention to the graph in the upper left corner. Here you see the typical power semiconductor content by application in euro per megawatts. If you look into the traditional forms of energy generation like fossil fuel, nuclear, and hydro, the number is nil, almost nil. No significant amount of semiconductor is required for these traditional types of energy generation. If we look now in wind, solar, and storage, we see very substantial numbers. They're in the range from EUR 2,000 up to EUR 5,000 depending on the application. Very meaningful, very good business opportunities for Infineon. Let's have a look into the row below the graph. The net additions in 2020, as they come in, are around 114 GW in wind, more than 130 GW for solar, and 5 GW for storage. If we think to seriously achieve the Paris climate goals, then we have to go at least for the sustainable development scenario. That is indicated in the second row. These are the net additions we have to execute in the now starting decade, and that means 110 GW on wind. We would say on track so far, 240 GW for PV, almost a doubling compared to last year's number, and storage significantly more, 22 GW. If we go a little bit more aggressive again, the so-called net zero emission scenario, which is proposed to drive down the CO2 emission in the developed countries to zero until 2050, we of course, have to be more aggressive. That would mean, again, roughly doubling the installations for wind up to 240 GW, for solar, 420 GW, and storage, remarkable 33 GW. On the bar chart on the right-hand side, you see what this means, aggregated, cumulated number until the end of the decade. That translates for the sustainable development scenario to 2,400 GW, 2.4 TW, and 4,200 GW in the case of the net zero emission scenario. These seem to be quite huge numbers. How do you translate them to the today's installed base on the globe? The tremendous amount of 4,200 GW amounts to roughly 40% of the today's installed base. That would mean we would have to replace 40% roughly by renewables, wind, and solar. These are very impressive numbers. Since we have other very good examples, especially in the area of consumption, I would now like to hand over to my dear colleague, Peter Schiefer, give you some insights what's going on the xEV side. Thank you. Yeah. Thank you, Peter. Electromobility will be a key area of power usage, and the trend towards electromobility has gained really momentum in the recent quarters. The urgent need for climate action in the form of emission regulations, the increasing customer demand, the accelerated OEM roadmaps for the electrified cars, and the newer technologies for longer driving range, decreasing costs such as for batteries, and the growing charging infrastructure are all positive contributors to this acceleration. You see this acceleration on the graph on the left-hand side, and this compares the analyst forecast for plug-in hybrids and for the battery electric vehicle production units from two years ago versus last month. The estimates increased roundabout factor of 1.2x for 2025 and even 1.5x for 2030. At last month's International Auto Show, the IAA Mobility Conference in Munich, you could see this acceleration in action where most OEMs showcased their new battery electric vehicles and their hybrid models. Infineon will shape the electromobility trend, and we also will benefit from it. Today, a car with a classic internal combustion engine has roundabout $490 of semiconductor content. The semiconductor Bill of Material increases strongly as cars become electric. In a plug-in hybrid or a battery electric vehicle, there's a semiconductor Bill of Material of about $950, which is twice as much. Even more important, the majority share of that additional Bill of Material relates to power semiconductors. Within the power semiconductor part, inverters account for roundabout 3/4 of the incremental semiconductor Bill of Material. This year, nearly 6 million plug-in hybrids and battery electric vehicles would be produced. We estimate that about half of the inverters built into these vehicles are fitted with chips and modules from Infineon. In the middle of this slide, you can see a very broad range of electrified cars from various OEMs and various regions being powered by Infineon's chips and Infineon modules for the inverters. This success can be explained by the advantages we offer to the customers. As we offer leading-edge technology combined with full system solutions addressing all xEV segments. All these advantages, the broad portfolio, the broad customer base, the silicon carbide in the IGBT portfolio, as well as the scalability places Infineon in the forefront of xEV. Our large IGBT customer base is an essential asset now for the transition from IGBT to silicon carbide. When OEMs want to expand their IGBT-based car models, or they want to introduce electrified cars with silicon carbide technologies, we offer an easy, seamless, and cost-effective upgrade path across the entire power range with our scalable product and packaging technologies and innovations. For example, existing customers can offer performance benefits like higher range from new silicon carbide technologies while sticking to the same module form factor. Our customers appreciate these advantages we offer in silicon carbide. We have won several designs over the past couple of years. Most recently, Infineon was awarded by Chuay Peng Ng's next generation silicon carbide-based inverter platform, and the value of this business is in the triple-digit million euro range. This design win is an example of the momentum we have in the silicon carbide technologies and shows that we are very well positioned to benefit strongly from the electrification of cars. Now let me hand over to Peter Wawer to elaborate on the industrial silicon carbide applications. Thanks a lot, Peter. Let's have a look on silicon carbide. As Peter outlined, we are known being the leader in the area of power for silicon-based devices. We are, and we want to be also the leader in the area of wide- bandgap power semiconductors. According to our own numbers, and also backed up by analysts' reports, we consider ourselves already being the leader in silicon carbide-based products in the industrial space. What's the reason for it? Various tipping points already have been reached. Besides the fact that silicon carbide-based products are much more expensive still compared to silicon, a growing number of industrial applications uses SiC, S-I-C, because it helps to reduce the system costs. That's the value proposition our customers are looking for. Why is that? Silicon carbide-based products are able to reduce the footprint, the form factor, the size. That delivers the value proposition to our customers. At the same time, or they provide higher efficiency at reduced total cost of ownership. There are some quite impressive examples. Let's have again a look into PV. If we think about 100-kW inverter system, such kind of system had a weight of around 1 ton only 10 years ago, and accordingly, high price. Today, with the latest and greatest silicon carbide-based products, 100-kW inverter system weighs much less than 100 kg, so can be carried easily by one or two strong men. That's very impressive evolution, which brings down overall system costs for the operator. EV charging, another very young application, and quite impressive one. If we think about replacing the silicon-based products with high-end silicon carbide products made by Infineon, we are able to increase the power output from the same footprint by 30%. Very impressive examples. Likewise is true for industrial power supplies, transportation, and also for higher-end drives where form factor matters. We meanwhile serve more than 3,000 customers with our SiC products, either directly or via distribution, where you see also some selected highlights on the right-hand side of the slide. Let's talk a little bit also about concrete numbers. What has evolved? What happened in the last fiscal year? You see on the left-hand side, with the preliminary numbers we know, we almost doubled our SiC-based revenue, not only in the industrial space, but the strongest contribution in fiscal 2021 came from automotive. We are around EUR 200 million revenue already, and we now see a very strong pipeline, and we think that we are again capable for fiscal 2022 to almost double the silicon carbide-based revenue, only being limited by supply. That means, in a nutshell, we are very well on track to achieve the EUR 1 billion revenue target set ourselves for the mid-2020s, which translates to a market share of roughly 30%. What's the reason for this tremendous success? It's of course manifold, and some good arguments are highlighted on the right-hand side. Our key success factors are clearly the leading trench MOSFET technology in the market. That translates to the highest amount of current that we can get from a wafer from a square millimeter of silicon carbide material. We are on our way to launch the second generation of our silicon carbide trench MOSFET with a lead product from automotive in the now-starting fiscal year. We already have the broadest portfolio which fits to customers' individual needs. Our portfolio is very much scalable, where we can decide based on the customer and application requirements to either amend the silicon-based solution, for example, inside a module with silicon carbide diodes, or convert it completely to a full SiC product. This kind of flexibility is something unique for Infineon. Scalable portfolio being able to seamlessly integrate based on customer and application requirements comes along with our very strong module capabilities on either automotive or industrial side, plus system expertise and custom access. These are very strong arguments for wide- bandgap products made of silicon carbide from Infineon. Of course, we do not stop. We also have a look into gallium nitride, and the recent very positive developments on gallium nitride will now be shared by my colleague, Andreas. Other than silicon carbide, many people are asking me, will gallium nitride be the next big thing in the semiconductor industry, talking about power semiconductors, to drive energy efficiency and contribute to decarbonization of the planet? Let's have a look. On the left-hand side of the chart, you can see the market analyst view. According to those, gallium nitride is about to meet the tipping point and find finally penetration in the area of power semiconductors overall. Why gallium nitride? Let me explain. If I draw your attention towards the middle of the picture, let's take the example of a charger for mobile devices. Compared to the next best alternative that you can find in the marketplace to charge your mobile, which is based on silicon solution, gallium nitride offers you the following advantages. Point number one, you can drive and switch the frequency during power conversion 10x faster than with standard silicon. Point number two, as a result of that one, energy efficiency can be increased, so up to 2 percentage points relative to the very best that you can find in the marketplace. That is halving your energy losses while doing the switching and power conversion. The other point is as a function of the first two ones, gallium nitride helps you to make a system smaller, more than 1/3 in given applications like a charger. Last, not least, also up to 3x lighter. A customer has a choice, coming from the middle in this chart, the grayish box, to go left or right. Most of the customers are deciding to go on the left-hand side, are choosing their way towards quick charging devices, chargers that go up to 60 W, a perfect place for Infineon gallium nitride to then also leverage its full power. The even more interesting question is: Why can Infineon win, and why will we win in gallium nitride? Let me guide you to the two aspects. One of which is our unique customer access and broad experience coming from system understanding throughout each and every of our focus applications. You can see them on the right-hand side, plus then also emerging applications. Based on this understanding, we sit on the table with all the major customers and game-changing innovators on the planet and talk about a meaningful rollover of gallium nitride coming from silicon-based solutions into GaN-based solutions, as well as research for new innovation fields, which are accretive fields of growth for Infineon in the power semiconductor space, leveraging on gallium nitride. The other aspect why Infineon will win are the following four elements. Element number one is availability of in-house gallium nitride technology plus the manufacturing capacity. Many competitors are out there talking about gallium nitride and their abilities. In-house GaN is something which is rather a singularity and not unique, but very much unique towards Infineon. Second point is experience in drivers. Infineon has that. We can combine our driving experience with gallium nitride switches and thus get the best out of a system. Third point is the interconnect technology and packaging. Vastly underestimated all the thermals that need to be managed once you have these high-power densities by the use of gallium nitride in conjunction with package innovation. Last, not least, it takes a lot of IP and the very broad patent portfolio which Infineon holds. We are very much proud of that IP. The combination of all four, customers can find only at the place of Infineon. Let me give you another promising and very interesting example for Infineon leveraging its innovation power in the area of power semiconductors, electrical and energy efficiency, and decarbonization. That's the field of servers and data centers. Our look at the market shows as follows. In terms of number of servers installed in the marketplace, analysts are talking about 8 percentage points growth. Medium spectacular, I would say. Much more spectacular is the following view. When you have a deeper analysis how the structure is changing within server and cloud installations that are happening in the market, you see that the much more power-hungry servers for machine learning, but also hyperscalers, are overproportionally growing. That leads to a reality that the Infineon Bill of Materials is growing by factor 1.3x to 1.4x faster than the average market growth. Perfect place for us to be in and to continue being in. Ultimately, let me talk about why Infineon is already winning and will continue to win in the area of cloud computing and data centers. First, it is a function of Infineon's experience in system understanding and being next to all the system-defining customers and cloud operators, because we are able to today serve all and any semiconductor from the grid to the point of load. Talking about AC/DC converters, DC/DC converters, DC/AC conversion, in case that's required somewhere. Our customers, the end customers and data center operators, love to talk about what's in, based as a function of new silicon technologies and also new materials such as gallium nitride or silicon carbide, to improve the power flow and the entire data center architecture of the future. We are having such discussions, and out of that one, Infineon is in a position to derive higher margin and better-performing products in order to do what? To optimize the power flow in such data centers. And that leads to two things. Point number one is the energy efficiency is ever-improving. Lower electricity and cooling cost for the operator of a data center. That's a big value that we are creating. The second point is systems are getting smaller through higher power density that we are offering. Based on higher density, data center operators can improve their capacity, CapEx, so to say, investments that are needed for one and the same amount of data that needs to be handled. Other than this, another few elements why we continue to win, want to mention. We are talking as a function of, so to say, understanding the data center as such with the chip maker, those guys who do processors such as Intel and NVIDIA, also AMD, and fine-tune semiconductors that match DC/DC converters next to processors and other kind of systems on a server. Apart from that, we are also talking to the ODMs and OEMs, so people who are making server systems, server racks. We help them in the thermals in order to miniaturize server racks, get better in CapEx for data center operators. We also work with ODMs in Taiwan and China predominantly in order to make their systems like AC to DC rectifier smaller, better, and less energy hungry and less energy consuming. Now you heard a lot about Infineon and Infineon's role in energy efficiency, decarbonization of the planet, and potentials to outgrow the market also in the future. That requires a lot of sophistication, then also in manufacturing. Regarding our manufacturing footprint and factory strategy, I kindly ask my COO, Jochen Hanebeck, to come on stage and explain more. Jochen. Thank you, Andreas. Indeed, we heard a lot about growth, a multitude of long-lasting structural growth drivers on the demand side. The question is, of course, how can we follow on the supply side of particular interest in these days? Well, let me talk about our first pillar, which is 300 mm. We have invented this technology more than 10 years ago. We brought it to volume. We brought it now to the second side, back to Villach. We are now in the position to accelerate in both facts to follow the market demand. In fact, the EUR 2 billion revenue potential which Villach represents once it's fully equipped, is supplemented with the Dresden capacity. Together, it represents EUR 5 billion of yearly revenue potential once it's fully equipped. The next step, and we are not going to stop there, is that we combine the two fabs in a virtual fab clusters. You may have heard about this concept in many areas, but I tell you, we have driven it really to a high synchronization level, which is a lot of effort, a lot of resources, but then you can reap the benefits, which are increased manufacturing flexibility, faster time- to- market for volume, but of course also for innovative products. Last but not least, it allows us to reap the benefits out of the combined economy of scale, and that's why we are ahead of competition in 300 mm and will be. Let's look into the fab, the One Virtual Fab, with a small movie that illustrates what I've just said. Always impressive still for me every time I watch it. What's the benefit of 300 mm? Well, of course, it's less CapEx intensive. It has a better capital efficiency, but it also provides us with a better cost position. You can see here over the next five years, if we grow with 50%, we will get our cost on the power and sensor front-end part down by 20%. This is mainly driven by 300 mm, also by an excellent cost position of our 8-in factory in Kulim, and that the European share of 8-in, 6-in will decrease. Why is the European share decreasing? Well, we prepare for our next pillar, which is wide- bandgap. With wide- bandgap, we are working on this material, silicon carbide and gallium nitride, already for a long time in our facility in Villach where we have a volume production environment to make it happen. As we speak, we convert 6-in to silicon, to silicon carbide. By the way, just to preempt that question, of course, we also have 8-in material at hand, and if availability and once availability, quality, and price are in the right range, of course, we can also and will convert silicon carbide to 8-in. At the same time, for Andreas' business, we are scaling up GaN, which is in the transition to 8-in. You may ask, where does it go next? We have moved the silicon volumes from Villach to Kulim, the natural step is now also for wide- bandgap, silicon carbide and gallium nitride epitaxy. We start in Kulim as a first step, you can see on the picture there's a big plot of land available for further growth. Another success factor in these wide- bandgap technologies, or in particular, silicon carbide, is the COLD SPLIT technology, which we acquired through the company SILTECTRA in 2018. We are making good progress. The first product is now qualified based on COLD SPLIT technology. We are ramping up in the pilot line and prepare for volume growth. Our supplier LTAs in the framework of boules and substrates give us the confidence that we have the raw material in place to fuel our growth. The next step with SILTECTRA is the wafer splitting. You can see Infineon is also accelerating, is powering ahead with wide- bandgap material and business. The topic of the session is electrification and of course, also the green part. Also for us in our factories, we contribute to our Infineon target to become CO2- neutral by 2030. We do this by installing the latest abatement systems and switch towards green electricity. For the big picture on our ESG story, I ask now Constanze Hufenbecher on stage who will give you more on this. Constanze, please. Thank you, Jochen. Yeah, let me now take a different perspective on what was just presented by my colleagues. We are proud that regarding sustainability and especially regarding CO2 emissions, Infineon is part of the solution. Making life greener is at the core of our mission. That's why our climate strategy is based on two pillars. On the one hand, our products and solutions contribute significantly to reduce CO2 emissions. On the other hand, we are constantly working on reducing our own CO2 footprint. We have set ourselves ambitious goals. We are committed to carbon neutrality by 2030. For 2020, we reported savings of 56 million tons of CO2 equivalents from our products over their lifetime, versus 1.6 million tons in emissions. That means that we delivered a net benefit of 54 million tons in CO2 savings. Just to give you an impression, this equals the annual electricity consumption of 90 million people living in Europe. Going forward, we expect the ratio of our CO2 burden compared to our CO2 savings, as well as the net benefit to further improve. If we now take a closer look on our own footprint and our achievements here. Infineon is ranking consistently among the top 10% of the most sustainable companies in the world. We have been listed in the Dow Jones Sustainability Index 11x in a row, and we have received many awards also from our customers for our continuous efforts in that area. If we look at resource efficiency and compare ourselves to the global average of our industry, we see that we consume 53% less electricity, 31% less water, and we even generate 66% less waste. Regarding our CO2 emissions, as I said earlier, we have set ourselves ambitious targets. We are committed to become CO2- neutral by calendar year 2030. This means we will be eliminating all direct emissions as well as all indirect emissions from electricity and heat. That means we will be eliminating Scope 1 and Scope 2 emissions completely. However, already as early as by 2025, we will reduce 70% of the emissions compared to the base year, which is calendar year 2019. We're going to achieve this by avoiding, replacing, and compensating emissions. We avoid CO2 by continuously increasing energy efficiency in our factories. Our local energy teams are working hard on this. We will make further essential savings through the most modern 300-mm process technology, the advancement of Industry 4.0, and our abatement efforts, which Jochen just mentioned. We replace CO2 by switching to green electricity. In Europe already this year, we are going to 100% green power. Asia and the Americas will follow in due course. Finally, we will compensate the remaining part of our emissions. However, it is clear that avoiding or replacing emissions has a clear priority over compensation. We carefully select the certificates we purchase. As we are growing our business significantly, we need to overcompensate this with our CO2 savings measures. Nevertheless, we are clearly committed to these targets. Since this year's AGM, ESG targets are also part of our board compensation. Our portfolio of products and solutions is strongly geared towards energy efficiency and sustainability. Making more out of less or achieving more by consuming less is the approach Infineon is taking to help developing better solutions for the most pressing problems of our time. Our technologies are key to solve climate-related challenges. Especially our high-growth applications offer further additional CO2- savings potential. Wind and solar energy installation capacity is growing. The penetration of more efficient drives is going up, and sales of electric vehicles are increasing significantly. We are perfectly positioned to grow in these markets and thus increasing our contribution to CO2 savings. Sustainability is an integral part of our business model and the basis for our success. Rest assured that we will continue to play an active role in shaping a worthwhile future. With that, we are going to summarize this session, and I would like to ask Jochen back on stage to join me. Thank you, Constanze. To sum it up, the key takeaways. You should remember, we are committed to make this world a greener and better place, and we power ahead in all sort of power semiconductors. Be it on wide- bandgap, silicon carbide, gallium nitride, and on 300- mm silicon, we are the market leader, and we will be the market leader. And? We're part of the solution. I think this is the most important thing to remind. Now I think we're going into a 10-minute coffee break, and be back in 10 minutes. Wonderful. Welcome to the third session of our Capital Markets Day, where we will focus on the secular and very exciting theme of digitalization. Digitalization is fundamentally changing the way we work and live, enabling step changes in productivity, safety, and comfort, as well as totally new use cases. Digitalization is a poster child example for how Infineon makes life easier, safer, and greener by connecting the real world with the digital world. The pandemic has been an extremely strong accelerator for digitalization in public recognition and acceptance, commercial use, as well as in industrial application. It has brought forward many digitalization roadmaps by several years. Digitalization has become ubiquitous at work, at home, and in public life. Connecting to what Reinhard said in the first session, it is a tectonic shift in technology. We are entering the IoT era of billions of smart, connected, and secure devices. The IoT market is very broad and fast-growing. It is composed of many different use cases in consumer, industrial, and automotive. Excluding well-established applications, it is expected to grow with a CAGR of about 11% for annually shipped units over the next five years, and it will grow to 9 billion devices shipped annually until calendar year 2026. Infineon is addressing the focus applications, here shown in bold, directly with innovative market-shaping customers. Through our direct and intimate cooperation, we develop solutions comprising of functional elements that are then building a platform. Based on that platform, we create optimized solutions to serve the full breadth of applications in the IoT space very effectively. For that, we scale our technical support for the large number of solution-oriented customers via our digital customer support, as well as via our distribution partners. We call this our IoT Playbook. We will describe it in more detail throughout this presentation. Let's have a look at P2S. As explained in the first session, our P2S strategy is about deeply understanding application systems and markets and turning this into superior solutions. These solutions are maximizing the customer value, supporting them to differentiate along one or more of the following aspects. One, functionality. Two, cost-performance ratio, or three, time- to- market. This higher value created for our customers is supporting our profitable growth. With Cypress, Infineon is optimally positioned to shape digitalization, much like we shaped electrification. With our enhanced portfolio, we are perfectly suited to link the real and the digital world. By substantially extending microcontrollers, connectivity, as well as software and ecosystem, we have complemented our strength in power, sensors, and security. We have also enhanced our IoT system understanding, platform-based design, and system support capabilities, and our scalable digital customer support. The acquisition of Cypress is a consequent realization and acceleration of a strategic P2S approach, in particular for the IoT market. Infineon has now become ready to offer easy-to-use, easy-to-integrate IoT solutions. After the acquisition of Cypress, Infineon has leading positions in all disciplines needed for IoT. First and foremost, broad application understanding, especially algorithms and security requirements, are very application-specific. In particular for IoT, connectivity is of course key. Compute, and especially for IoT pairing of microcontrollers with connectivity, is crucial as well. And with the fast-growing network of connected devices, integrating security, including our secure memory products, becomes critical. Software is the next crucial discipline. From BIOS, drivers and firmware, all the way to reference software, these are important elements to create winning solutions. Our development platform for ease- of- use and fast time- to- market is essential to scale into the breadth of applications in IoT. In addition, our broad sensor portfolio and our power semiconductors are the base for many solutions that we create together. Overall, winning in IoT means mastering all relevant disciplines, and by doing this, it is how we make IoT work. One and a half years after closing, tangible progress on synergy generation is being made all in remote PMI. We are following a proven script for the integration. Achieving the revenue synergies that we have announced is on track based on the design wins already achieved. Our significant open-source design win funnel and product initiatives that we have started to offer new dedicated P2S solutions for this broad range of focus applications are on a very good way. We confirm revenue synergies of EUR 100 million for the FY 2022, based on design wins achieved already above that target. We are on a very good track to reach EUR 850 million of revenue synergies by FY 2025. For that, for the P2S synergies, we are investing strongly into R&D and are strengthening our cross-divisional collaboration. These mid- and long-term synergies will support 9%+ growth per year going forward. More will come in session four about those results. Before we get to that, Thomas Rosteck will look more deeply into the microcontroller and software elements, as well as examples from the Industrial IoT market. The stage is yours. With the acquisition of Cypress, we have increased our competence in connectivity, we also added industrial and consumer microcontrollers together with enhanced software expertise as well as the respective ecosystems. Microcontrollers and software are key for the success of IoT as they define the functionality and the time- to- market of the device. Infineon has a broad existing microcontroller offering for best application fit, that's important. Together with other components of our portfolio, we can offer dedicated platform-based solutions on a wide range of applications that we already have targeted in the past, as well as new applications where we have now more complete product offerings. In addition to microcontrollers, software together with a broad ecosystem are really important components for our solution-oriented customers and are therefore creating superior customer value and allow Infineon to capture more thereof. Let me just pick a few examples here. Let's start with ModusToolbox. ModusToolbox is a developer's ecosystem that provides tools and reference code, which on the one hand enables fast time- to- market for our customers and on the other hand allows us to way better reach the broader market customers. With more complete or even complete products, the functionality is already available for our customers to easily integrate them into their products. They can focus on their part of the innovation, on their innovation part of the product to go forward. As an example, we do provide our extensive know-how in motor control algorithm packaged into our iMOTION solution offering. Let's have a look on a market in a field of digitalization that's developing fast and where we can contribute significantly with our capabilities. It's artificial intelligence. Artificial intelligence and machine learning algorithms play an increasing role across consumer and industrial applications, as we're going to see. Today, the majority of those algorithms, as you see on the left side, are trained and execution of the algorithms in the cloud, meaning in central data centers and compute farms. This is easily scalable, and it drives actually enormous compute power and storage requirements to be installed, which is a great opportunity for smart power supply and power conversion solutions of Infineon. Actually worth mid- to- high- triple- digit euro for a single AI training server system. Latency, bandwidth, and power consumption concerns are key limitations of this approach. Systems that closely interact with humans or with technical processes have response time, so-called latency requirements, that cannot be met with systems that transmit enormous amount of data to a central data center in the cloud and receives the response from there. Actually, operators say if you want to have a response in milliseconds, the server farm can only be 100 km away. Think, for example, about expected response times of video or audio streams for user authentication, voice control devices, or real-time control tasks in machines. Additionally, connectivity may not be guaranteed 100% all the time as needed for safety critical operations if you think, for example, about assisted driving. Therefore, the processing has to move closer to the source of data to the user or to the equipment, which is either in the device itself or in a nearby, more powerful edge device. This, here we talk about edge computing, or in our case here now, Edge AI. Sensors with AI capabilities deliver information into trained neural networks, which are implemented in device-based hardware accelerator, like the Tiny AI and/or in specific AI software IP blocks. With this, typically very power-optimized implementations can be realized with a fast response time. This local intelligence might be used for, detect specific types of sounds like human voice commands or the signal of an emergency car based on high-quality silicon microphones, or to count people or recognize human gestures on an advanced radar sensor. Additionally, on top of this, robust and reliable connectivity and security are also key requirements that we address with our solutions and competencies. There's an enormous market enabled by Edge AI. According to ABI Research, the Edge AI compute chipset market outpaces the cloud AI chipset market in 2025. Obviously, this is a huge opportunity that plays right into the competencies in the field of smart sensors, embedded control, connectivity, security and smart power. Now, we will see how this works in an industry example. If you look at Industrial IoT, predictive maintenance is an example of a use case that brings several advantages for industrial customers and hence, is projected to have a significant market and growth rate. The ability to predict the maintenance requirement for key assets and to detect anomalies before those turn into failures or before it causes producing defective parts, is a significant lever for productivity through reduced downtime, better capacity utilization, and with this, obviously lower costs. By bringing the processing close to the machine into the edge, the advantages of the Edge AI that we discussed, like increased response times, low latencies, low power consumptions, can be leveraged to achieve the real potential of predictive maintenance. In this context, Infineon's broad offering enables this use case through a wide range of smart sensors for acoustical, optical, gas or mechanical or electronic monitoring. The Edge AI enabling of our microcontrollers and the ecosystem. Actually, we further develop Edge AI IP, among others, in our AI competence center in Dresden to balance performance and power needs. Of course, our products and services with which we enable security and robust connectivity, which are crucial in the Industrial IoT environments for communication of information. We also provide this approach of predictive maintenance, to other applications like smart building, for example. Again, now predictive maintenance is only one of many use cases enabled by Edge AI in Industrial IoT. The same principle and similar components can also be implemented in other use cases, including image and object recognition, autonomous material handling, or human machine interface for end- devices, among others. Now moving to the consumer side, where there are several applications on which Infineon can play its core competencies that I have explained before. Take home automation devices as an example. This market covers a wide range of devices and is driven by the need of enhanced user experience at home, and especially reducing the complexity for the consumers to manage several devices at home. The market offers a very attractive CAGR of around 20%. Concrete examples for applications are wireless smart cameras and smart door locks. These are devices where our application understanding and broad offering enable customers to bring innovative solutions to the market. Customer examples include well-known leading OEMs, as you can see here. Another example in the area of IoT will now be presented by my colleague, Andreas Urschitz. Yeah. As said before, a couple of examples that Infineon is proud to present to you with regards to leveraging its capability to cross-sell and act as a one-stop shop to its customers. Here in the area of wearables, and more concrete, the example of smartwatches or smart fitness trackers. Customers are loving to work with us based on our system understanding. I give you a simple example, which is the battery lifetime and boundary conditions for battery lifetime when using a smartwatch like this one. Out of that, we are in a position to provide our customers with unique solutions, if you will, in the area of GPS tracking and barometric tracking, once using a smartwatch while doing outdoors activities. We're capable of defining and then also providing the world's best memory devices that allow super-fast and energy-saving access to data while having tracking exercises, if you will. Last not least, we have cool capabilities in the area of low-power Bluetooth connectivity. To have these watches or Fitbit kind of trackers are always connected with the mobile device. Also the controllers that are necessary to then, other than managing all the devices in smart wearables, then also enable the topic of touch interaction based on, so to say, capacitive sensing on the display. People like Suunto, Garmin, or then also, as mentioned here, Polar Semiconductor, are our customers amongst which we are proliferating further with our offerings. Another interesting area is the smartification of our homes. Well-known to each and everybody of us, in particular during the pandemic, that was getting a lot of additional momentum, the smartification of the things that are surrounding us at home. Let me give you two examples where Infineon broad offering one-stop shop and system understanding-based approach plays a major role. That is one, in the area of TV sets and these big screen OLED TVs, where, so to say, design and the form factor plays a major role. TV manufacturers want to make the OLED frame as thin as possible, but there's a problem. These devices require up to 500 W, 600 W of power, and how to make a power supply so flat that it doesn't disturb the design factor. We have the solution. Our power semiconductors based on gallium nitride and other such materials enable super flat power supplies that power energy efficient, the large screens. The other topic is somebody does not want to have the screen at home when used as a kind of a picture frame not always on. You want to use it and have it only on and consume energy in the case of people being present in the room. Therefore, you need very accurate presence detection. You need a presence detector that can differentiate between a pet, which is a dog or a cat, or a human being in the living room in order to then fuel up the power and, so to say then, show the picture in the frame. Our radar devices are the perfect solution that can do this differentiation. People tracking presence detection in the most accurate manner and with that, save energy. Another example and application in terms of smartification of your home are the smart vacuum cleaners. Those have a couple of challenges, one of which is they are driving around in our living rooms. Reinhard said it, he does not want to have this vacuum cleaner then somewhere next to his or even driving over his feet. We have a perfect solution for that problem with the broad portfolio of ambient sensors. We put 3D Time-of-Flight cameras on these robots. We put radar devices on the robots in order to do what? In order to make the robot understand the room condition it's in and to take a break when, for instance, a chair or a table or human beings are around. Radar is being used in order to understand the floor conditions. Is it a carpet? Is it a wet floor or whatever it is? Radar can tell the device in order to then also change the cleaning program. That leads to what? Unique user experience with an utmost clean kind of a floor. More about digitalization and Infineon's offering in the area of very intelligent cars to be presented by my colleague, Peter Schiefer. Peter, please. Yeah, thank you, Andreas. Let's move from the smart home to the car of the future. The car of the future is clean, safe and smart. In the electrification session, we covered already the clean aspect of the cars. Here now we talk about how the safe and the smart aspects relates to digitalization. The car of the future is driving digitalization in many aspects. We picked five of such aspects here in that slide. In the automated driving, the object recognition or the advanced spatial sensing are very good examples for digitalization really enhancing the safety aspects of a car. Take the example of software over the air. You no longer need to take the car to the garage for a check or for an upgrade. The connected car can be updated and upgraded on the go. Digitalization has also changed the infotainment aspects in the car and also the human machine interaction aspects which come along with it. As car drivers, we expect seamless and cross-device digital experience. Basically, we expect the same infotainment experience as at home in our living room. Digitalization instrument cluster and the strong also increase of the comfort and the premium features in the car that are enhanced by digitalization are further examples. Now, Infineon has a broad product portfolio to address all these digitalization tasks, starting from digitally lighting, the capacitive sensing connectivity such as the Wi-Fi, Bluetooth, the USB type of products, as well as not to forget security products that make connected cars cyber secure. In all of these systems, Infineon microcontroller and memory products are widely used. Talking about microcontroller, over the past couple of years, AURIX has become the first choice in automotive architecture for high-growth and safety-critical applications. These microcontrollers are used in powertrain, in safety, in ADAS/AD, as well in the new area of the domain and the zone control. In this slide, you see the revenue CAGR for AURIX in these categories, and you can see that the AURIX revenue will grow strongly across all these categories in the next four to five years. The AURIX family of products are key components for our Product- to-S ystem strategy. There we offer a full solution combining several product groups to really optimally address the system from a holistic perspective. You may also note that AURIX revenue growth is coming from already large segments like powertrain and classical safety. In the bottom of the slide, you see a recent design win. It is a car scheduled to be produced about in the middle of the decade. It will have not less than 35 AURIX MCUs on board. This customer, this is a big OEM, is really shaping its market with this architecture. How we approach such market-shaping customers will be explained by Helmut Gassel. Yeah. Thank you, Peter. I think you've shown probably one of the most complex IoT devices out there. Let us now dive into our IoT Playbook. We want to share with you how we combine the IoT disciplines that all of the colleagues have shown with our customer interaction to make IoT work. In our focus applications, innovative solutions are jointly developed with lead customers in an intimate and deeply integrated process. These innovations then build this platform of functional hardware and software elements that allow to build optimized solutions for the entire IoT space. These solutions are all designed upfront as adoptable, scalable, and easy to use. That facilitates their quick adoption by this large number of solution-oriented customers, and therefore a quick adoption by the broad market. We call this our IoT Playbook. To give you an example, a radar solution originally designed for automotive applications has been transferred to the people presence detection use case, together with a smart home customer, and these are now adopted by several other home appliances companies. For instance, an air conditioning company that is checking whether or not a person is present and therefore air conditioning is at all required, or a smart lighting manufacturer. To scale our services, and especially our technical support to the significantly larger customer base, we develop easy-to-use reference designs, development kits with software blocks and limited customization options for more and more applications. In addition, we offer fully digital customer journey to solution-oriented customers and developers of emerging applications. To achieve a scalable customer experience, we drive a community approach and substantial self-service with a 24/7 web-based platform. This platform is seamlessly integrated with the services provided by our distribution partners and our own technical experts. Constanze will now provide more insight into our digital customer interaction. Thank you, Helmut. To win in IoT and the broad market with solution-oriented customers, we need to offer a fully digital customer journey. We want to meet our customers no matter where they are, location-wise and in their customer journey, and we want to provide them instantly and 24/7 with exactly what they need. This is why we are investing significantly in all our digital channels and interfaces. We want to bring the customer experience to the next level. We are aiming at reaching more customers and identifying more sales opportunities, providing easy-to-use tools and relevant and accurate information during our customers' evaluation and design phase. We want to achieve a higher conversion rate of sales opportunities and increase customer satisfaction with a superior 24/7 support. To get there, we are, for example, upgrading our website with optimized search functionalities, more and better content, and improved personalization. We are enriching the content of our developer communities for comprehensive technical support. We're providing software, development tools, and services through a single harmonized platform. This digital go-to market will be a differentiating factor, will boost our revenue growth, especially in the IoT market, and increase our sales and marketing efficiency. As we now have demonstrated how we are going to win in digitalization in the IoT markets, let me point out that digitalization is also an important lever for our five key success factors. Reinhard Ploss has shown those in the first session. With the digital transformation of Infineon, we are creating substantial value for our customers and, at the same time, increase speed and efficiency of our internal processes. There are basically three fields which we are tackling. First, we're expanding our offering of digital products and services. That means we are offering more and more embedded software. We provide tools which customers are using to develop their solutions. We offer a rich ecosystem for software and development tools from our partners. Moreover, in some cases, we also offer digital services to our customers. These offerings make it easy for our customers to design and develop their solutions and allow them for a short time- to- market. The second field is our digital go-to market approach. As I just presented in the last slide, for some markets and customers, we will have a purely digital go-to market. For others, we are targeting a seamless integration of online and offline channels to strengthen our relationships. With this approach, we will ultimately serve our customers better, deepen the understanding of our customers and their applications, and at the same time, become much more efficient in our internal sales and marketing processes. This actually leads me to the third field, the digitalization of our internal end-to-end processes. With increased automation, data-driven decision making, and by using artificial intelligence at scale, we see a great potential for faster and better decision making, as well as increased efficiency in all our processes along the entire value chain. For manufacturing, Jochen Hanebeck already presented in our second session a perfect example with our new One Virtual Fab. In R&D, the major benefit of our digital approaches is a faster time- to- market. Our engineers are enabled to focus on those areas where we can differentiate in the market with superior quality and better solutions. In some AI use cases which we already implemented, for example, in manufacturing or R&D, we see an effort reduction for specific process steps of up to 90%. Also in other areas like sales and marketing, supply chain, procurement, and others, there is significant potential for speed, efficiency, but also for more tailored offerings for our customers. To sum it up, we are convinced that digital transformation will make Infineon even stronger. With that, we would like to summarize this session. Helmut will join me on stage. Yes. Let's go through, what have we learned, what have we talked about? With Cypress, we accelerated our P2S strategy. We focus on high volume and high growth areas within the core of the IoT space, Industrial IoT, smart building, smart home, and wearables. We have acquired key elements like microcontrollers and software. The mostly virtual post-merger integration is well on track, and the revenue synergies are unfolding as planned. With our IoT Playbook, we have a tailored go-to-market approach to win in and with digitalization. All in all, the digital transformation enhances Infineon's key success factors, enables our long-term growth, and strengthens our position in the market. In the now following session, Sven and colleagues will share with us how electrification plus digitalization equals sustainable value and how this translates into our financial performance. Sven? Welcome to the last session of this afternoon, morning, evening: Value Creation. You heard a lot from my colleagues about digitalization and electrification. Let's bring it now into the reality of our financial models. Starting with a quick look back into the mirror on our share price development. We learned that Infineon had a profitable growth journey and is on a profitable growth journey. We learned that electrification and digitalization gives us a lot of potential for future growth. If you look into the share price, you see clearly that there is a lot of support from you guys in the market. The share price since the COVID trough and the Cypress closing in spring 2020 has more than tripled. We have clearly outperformed the indices and also if you look at a more long-term perspective, the share price has developed very well. We are committed, you hear that again and again, to deliver further value to execute according to our target operating model. This is a slide I don't need to repeat. You saw it a couple of times, it gives us the sequence of topics which my colleagues and I are going to present to you in the next minutes. First, we will walk you through the revenue growth on a group level and then by divisions. We will go into the profitability and we'll give you the factors which are supportive of a further margin leverage. Lastly, we will end that with a view on the investment to sales approach, again, following the logic of the target operating model through the cycle. We are going to present to you the holistic view of Infineon. In session one, we already introduced that concept of an EUR 11 billion company. That's the preliminary 2021 number. This is the well-known divisional split. ATV, slightly above 40% of the revenue, followed by PSS with 30%, followed by IPC and CSS. How will the group look like in 2025 based on today's view of the growth markets and applications? It will be an EUR 16 billion+ company following the logic of the 9% growth through the cycle. We have given you the first revenue growth number already for next year, mid-teens, which is above the 9%. If you look at the EUR 16 billion+, not a lot will change if you look at the divisional split. Automotive will still be the biggest division, slightly above 40%, followed by PSS. CSS growth is expected to be a bit higher than for IPC. The two will probably have the same size in 2025. Where is this cumulative revenue growth coming from? That should not be a surprise. We are talking about digitalization, electrification. You see here that both drivers have a pretty equal importance. Electrification is good for roughly half of the expected growth. The remainder is digitalization and other. Lastly, the divisional revenue contribution. Again, automotive, biggest in terms of absolute volume, followed by PSS, CSS, and IPC. Two more comments. The first one is because we are always getting that question on revenue synergies. Revenue synergies are included in these numbers. The EUR 800 million-EUR 850 million number for 2025 is baked into the EUR 16 billion. Of course it is, as I said, based on today's view of the growth and the applications. We are not modeling in any kind of pandemic, just to give you an example. You've seen the overall holistic picture for the group. You are probably very much interested in seeing the details. Why do we think that the divisions will grow as we show you? Therefore, I hand over now to Peter Schiefer, who will start with a revenue bridge for automotive, followed by the colleagues. Yeah, Infineon is the number one in automotive semiconductor market, and we are really the key beneficiary of the electrification and the digitalization, enabling the car of the future and also providing us a revenue CAGR of 10% through the cycle. xEV and ADAS are very strong secular drivers. Taken both together, they drive round about 50% of the ATV growth, and the remaining 50% of the growth is driven by the classic, the comfort, and the premium applications. They are also benefiting from the further trend into semiconductor content per application. In the next five years, xEV is expected to grow around 20%, and in the same time period, ADAS is expected to grow in the high teens. The classic, the comfort, and the premium segment, here we have kind of a mixed bag. There is legacy business like a power window or a central door lock, which is saturating. There is also a lot of fast-growing business like matrix lighting, premium comfort feature, for example, head-up display, digital instrument clusters, and in-cabin infotainment. Taking all these applications together, we expect to grow to high- single- digit. If I then include the xEV and the ADAS on top, so the entirety, I am therefore very confident that we will be able to show at least 10% annual revenue growth from automotive. I hand over to IPC. Yeah. Thank you very much, Peter. IPC, the industrial sector confirms the through cycle growth of 8%. Having the main contributors here listed, I think it's no surprise, based off what has been previously said, that renewable energy generation, PV and wind, are the number one contributor to this growth. Number two. As number two already in comes transportation. The reason for that is that, of course, the emission-free cities mandate drive of electrification on commercial and construction vehicles on top of the car. It's also worth to mention that we share also a portion of the content, as for example, onboard charger inside the car with our colleagues from the ATV division. Number three, power infrastructure. For charging the cars, we need EV chargers. That's a huge growth opportunity. At the same time, while the renewables drive for more distributed power generation, we need significantly more investment into the power grid. It's not the unidirectional power flow that we used to know from past times, but we have to be able to shift the energy where it's needed from left to right and from right to left. Power infrastructure, added by investments into storage facilities, comes in as number three. If I would have said here five or 10 years ago, the number one would've been automation and drives. A significant shift in our portfolio towards renewables, towards the distributed energy generation. Automation and drives still is significant contributor to our revenue growth because ongoing automation and energy efficiency targets also require refurbishment, additional investments into this important area. Home appliance comes in at number four. Motivation is exactly the same. Inverterized home appliances are able to reduce the energy consumption up to 40% compared to non-inverterized devices. Of course, also here, governmental rules and the regulations require more inverterization looking forward. Last but not least, there are the others. That's an unknown where we expect that under 2025, the contribution is not significantly or not very substantial, but we see here also very interesting emerging applications. As for example, e-marine. Ships becoming electrified, especially ferries. First prototype's already running. Of course, e-aviation. That's of course a little bit special application. Let's see how relevant that will be. Another topic which is quite relevant is the topic of hydrogenation. Electrolyzers achieving the high energy density, which is required, for example, to have CO2- neutral airplane traffic. Hydrogenation will give us another opportunity and boost growth also for the years to come after 2025. Having that said, I would like to hand over to my colleague, Andreas from PSS. Yeah. To catch up Peter's words, from left to right, from right to left, PSS is committed to continue outgrow the average growth of its markets and continue outgrowing then also competition, holding 9 percentage points CAGR through the cycle. Follow me in what are the main drivers in order to make this happen. As you know, PSS stands for Power & Sensor Systems. We are the ones that are holding a considerable portfolio of power semiconductors there with system solutions for AC/DC, DC/AC, and DC/DC systems. On the other hand, we have sensors in our portfolio. What we're trying to do is to emulate the five human senses towards any kind of electrical machines and equipment in order to make human to machine interaction more human-centric, more meaningful, more kind of easy to do that and easy to cooperate going forward. In particular, in the area of sensor systems, we see a significant growth potential for the corporation for PSS in this context going forward. That brings your attention to the bottom left side of this chart. Sensor systems are one of the growth engines for the entire PSS under this basket of human machine interfacing. We have the world's best silicon microphones. We make machines hear. We have the world's most accurate and sensitive eyes with our radar chips and Time-of-Flight 3D cameras. We make things see, if you will. We have smart noses with our CO2 and multi-gas sensor. Last not least, we have smart feel, pressure sensor and temperature sensor. All in all, five senses which are making the interaction with humans and machines much more easier as a big growth opportunity for the corporation going forward. In particular also in combination with software, and so to say, compute power that is being served by my colleague, Thomas Rosteck, who will talk after myself. Second point, where PSS continues to outgrow the market is the entire area of data center. I think enough has been said about this. We benefit from the whole tailwind for the computerization, digitalization, using ever more capacity in data centers. Energy efficient devices are the name of the game. We will continue to grow both in the top line of things and also grow the bottom line of PSS, in particular in this very segment. Third point, batterification of everything. People are trying to get rid of cords, if you will, with whatever kind of tools or equipment. Everything is getting batterified and everything which has a battery and which has a DC motor somewhere driving, such as four-wheelers or two-wheelers, or any kind of tools that we're using at home, that requires sophisticated semiconductor, power semiconductor solutions, including control from Infineon. That's the third major growth bucket. The fourth one is the area of telecommunication 5G. Two aspects. We continue to proliferate the market with outstanding power-saving solutions in the area of, so to say, the 5G telecom cabinets. Space is very much constrained in these telecom base stations. 5G being put on one and the same entity, if you will, is always suffering space constraints. By using solutions based on gallium nitride, silicon carbide, we can make 5G fit in existing telecom equipment, and that will drive our growth. The other point that we are coming up with is gallium nitride on silicon for radio frequency power amplifiers. That's a strong growth driver in the area of 5G going forward. Last not least, I want to mention the onboard charger that has been mentioned by Peter Schiefer from ATV and Peter Wawer from the IPC. What is PSS doing in that? In particular, gallium nitride is the thing that we are bringing into onboard chargers in order to make these devices lighter and as small as possible. So world-record form factors, if you will, which is the name of the game of electrifying the car of the future. Having said that, I want to hand over to my friend and colleague, Thomas Rosteck, to talk about the growth engine of Infineon CSS. Thomas. Thank you, Andreas. Through our compute, connectivity, and security capabilities, we now have access to a wide range of applications, especially on the industrial and consumer side. Before I go into the details, let me take one step back and talk about the synergy aspect, because the synergy aspect is affecting CSS quite a bit for two reasons. On the one hand, we are using the divisional sales of our colleagues and their expertise and application to, on the one hand, address the customers. On the other hand, we also get the know-how of the market for the application to build better products that are usable in these different markets. On the other hand, we are providing them, the other divisions, with the capability of using embedded control, of using connectivity and also software to make more intelligent power or more intelligent sensors as we have discussed. A good example, we'll start with this industrial segment. We expect the industrial segment to be the main growth driver, leveraging especially on our MCU-based solutions using Infineon's building blocks that I just mentioned, so sensor control, motor control, and power management, through which we will be able to gain share in this segment. Again, this is one of the things where we utilize the know-how of especially IPC and PSS significantly. Moving into the smart home side, through the increasing implementations of the latest connectivity standards, meaning the ramp of Wi-Fi 6 and Wi-Fi 6E, as well as Bluetooth Low Energy across the smart home devices, as well through our enhanced MCU capabilities, so meaning the pairing of MCU and connectivity, so with Bluetooth and Wi-Fi. On the other hand, also our human machine HMI strengths that we have, we are very good positioned to capture inherent growth and opportunities in this field. Also again, here, the strong cooperation between the division is one of our success factors. In the smart home market, it is also an important growth areas for CSS, especially for our security solutions, driven by the increasing implementation of security technologies like the embedded SIM, as well as battery authentication. Let's moving forward here. In wearables, that's something that Andreas has addressed earlier in session three. In wearables, our broad portfolio of solutions from low-power connectivity through MCUs and also security, so for example, NFC payments in a given wearable. This enables us to capture growth in this field, which has seen a strong demand in the last year and which is expected to continue in the years to come. Automotive is the fifth largest growth contributor for us. Here, our connectivity offerings are expected to drive growth by leveraging our current very strong Wi-Fi 5 footprint while driving now the transition to Wi-Fi 6 and also to Bluetooth Low Energy pairing use cases. As well, and that's the second pillar beside connectivity, the implementation of security, which obviously becomes way more important in the automotive field. It goes from the embedded SIM, so the machine-to-machine application for communication, to the V2X, so vehicle-to-street, vehicle-to-vehicle communication. All of this needs to be secured. We have this very specific segment of smart card, and here we expect the growth contribution momentum continuing. Especially the COVID pandemic has driven the need for contactless solutions, being it payment or being it identification. This continue will move on. There will be also new applications and new technologies. One of the trends in the card industry is so-called biometric cards, where you have a two-factor authentication already on the card, which is comparable to the phone payment which we are doing today. The identity and the ticketing market that have actually suffered in the pandemic, they are expected to recover. Additionally, and this is now the last section, additionally, we will also generate growth from a broader range of applications. Being it computing, being it disposables, being it gaming, being it other applications, and there are lots out there that we are addressing already today from an Infineon perspective, and we are now able to also address them with enhanced microcontroller and communication skills. These are especially on the consumer side, and we were going to enable them with the core strengths of Infineon, with compute, with connectivity, and also security solutions. All these attractive markets, and you see that below, all these attractive markets lead us to a growth potential for CSS of 12% above the market. Overall, one thing that CSS is going to drive forward is it will be based on our software capabilities, a stronger solution approach, and also the addressing of the broader market with easy-to-integrate solutions. For the summary of the group now, I will hand over to Sven. Thank you, Thomas. You've seen how enthused my colleagues have been and how many different options and possibilities we can explore. I'll try to recap that in a way by focusing, and you are now in the meantime familiar with this revenue doughnut, by focusing on the key growth applications by division to sum it up before we then come to the profitability path of the target operating model. Starting with automotive, you see that xEV and ADAS today represent roughly 12% of the Infineon revenue. In 2025, given the very significant growth opportunities, both together will represent 15%. 15% will be good for give or take EUR 2.5 billion of revenues in these two growth applications. That's quite a sizable number. On IPC, you heard it, if you think about renewables and transportation, 5% of Infineon will be in these applications. Peter mentioned it, if there would be a further acceleration on the renewable side, the number could be even bigger, and some of the renewable initiatives will only come fully through in the second half of the decade. There is a lot of growth even beyond. PSS, Andreas Urschitz mentioned it. If you look at human machine interface, cloud, data server, if you translate that into the applications, compute, smartphone, communications, how we call them, they will represent 21% of the revenue in 2025. That's a pretty significant revenue number of EUR 3.5 billion. Lastly, Thomas Rosteck explained IoT, Industrial IoT, consumer IoT, both together will probably represent around 6% of the total revenue line, which is another EUR 1 billion. If you add that up, the automotive growth applications, the industrial, the PSS, and the CSS growth applications, these eight, which I was just highlighting, represent roughly half of the EUR 16 billion in revenue. A lot is driven by those, but the diversification of our model holds. There are a lot of other things which we alluded to which generate the other half. Moving from the revenue to a more, I call it resilience perspective for the company, this is very important for us. Reinhard alluded to it in the beginning. If you look back, and this is again a little bit the same chart with certain additional information, you see the growth. You see the growth in terms of absolute revenue. You see the growth in terms of profitability. There is a steady upward trend of the segment result margin, and resilience is best visible when things become a bit difficult. We just took two data points out where we can illustrate peak to trough. If you compare 11, 19, the peak-to-trough compression has nearly halved in terms of profitability compared to the previous cycle. Lastly, resilience also has to do with absolute numbers. A group which has 2.5x higher equity, which has 2.5x higher segment result, and which has 2.5x higher revenue, has a much higher resilience for a potential downturn. This is a very good illustration of how Infineon has developed in a much more resilient company based on the business decisions in the past. Moving even further into the profitability section. The left chart shows you the old, the former target operating model before we acquired Cypress. I think looking back to the Capital Market Day 2018, it's worthwhile just spending a minute on how did we do? Did we fulfill what we told you three years ago? You see here in that chart, the profitability development from 2017 to 2021. If you exclude the orange- marked COVID block, you can clearly see that, yes, we achieved the 17% through the cycle. No target operating model on Earth can forecast and include an unprecedented pandemic. To take that out, I think is a fair statement that even including COVID, we came pretty close. I would say a tick mark on the previous term. Now looking ahead, the current target operating model, which we upgraded, where we included a plus in the 9%, where we increased the profitability and reduced the capital intensity, is oscillating around the 19%. Please, this is an illustrative graph only, so the graph doesn't mean that it cannot be above 20%, 21% or below 17%. We just want to show that the new model is, through the cycle, designed to achieve the 19%. What are the key levers for this margin expansion from 17%- 19%? You heard it all. I try to recap it here quickly. The first one is the Product-to-System strategy, which has been kicked off years ago and which is now accelerated, more pronounced with the Cypress acquisition. Moving into P2S higher value system solutions gives you additional profitability. The Cypress revenue synergies, as explained, they add a part. Of course, additional customer value creation, so pricing is a positive element in the gross margin and in the profitability, and the business mix comes on top. You also heard and will hear about the manufacturing productivity, 300 mm. Cypress cost synergies, we can reconfirm the EUR 180 million annual run rate. It is coming through as previously predicted. Also on the cost side, if you have a company which is growing that quickly, you have to have a cost control, a cost discipline also on SG&A. That's what we call SG&A scaling. Therefore, we can also reconfirm what we said when we did the acquisition. The Cypress accretion is coming through nicely in the entire period. What are limiting factors to the margin expansion? Should also spend a minute on those. One thing is clear, in the current market development or environment, increased foundry prices, increased commodity prices, they play a role, and they need to be mitigated. You can partly mitigate them with long-term agreements, passing them on to the customers, but that is an inhibitor to the margin expansion. The pre-funding of the Product-to-System synergies, we talked about it. Investing today into the revenue of the future, especially in the CSS division, but not only there, is a factor which you need to take into consideration. Lastly, we also talked about the wide- bandgap expansion, especially in the beginning, you have to pre-fund the growth, which is expected to come dynamically from both technologies. With that, I would have concluded the revenue part and the profitability part. We want to see how everything is linked, investment, sales, and value creation, and who's best to explain that to you? It's a pleasure to hand over to Jochen again. Thank you, Sven. We heard our target is EUR 16 billion of revenue in 2025, and the question is, of course, how we're going to realize this. Well, we reconfirm, we stick to our manufacturing strategy, meaning that for power and sensors, wherever it's differentiating technologies, we will invest wisely, smartly in in-house manufacturing. In the post-COVID re-ramp, despite the winter storm in Austin, the power outage in Dresden, and the COVID-related issues in Southeast Asia, I think we have seen the benefits also of this model, therefore, we will continue. We will also continue with outsourcing. Outsourcing for geometries smaller than 90 nanometers and standard packages in assembly and test. We will modify it slightly. We will spend a low triple digit million amount in 130 nm for in-house as we see that certain products are of strategic importance for our system play. At the other end, we see not so much of an appetite on the foundry side to invest into this node. Talking about the foundry, this is of course what keeps us awake these days. We have seen a big snapback in demand, which reveals the scarcity of foundry capacity. This has cyclical and structural elements. A lot is written about it, under-investment into mature nodes, double-booking, disruptions which restrict supply, and so on and so forth. We manage this based on our long-term relations with all the foundries, all the big foundries. Here comes the second element where we have to modify our approach. We are willing to spend some money on prepayments in order to secure strategically important nodes. How long does it last? Well, if their solution is based on additional capacity, then meaningful capacity will only come on stream in 2023 and 2024, additional capacity. If other end markets, in particular smartphone within the consumer framework, is weakening, of course, the relief will come earlier. Coming back to our in-house and our CapEx- to- sales model, which I would like to walk you through one more time in detail. CapEx- to- sales is obviously the investment we spend based on our revenue growth. It's not a fixed number. We have not said that 13% is in all times, depending on the market cycle, the right number we're going to invest. If the growth is lower than 9%, we will spend less. If the growth is higher, like we expect this fiscal year, then we will also spend more than the 13%, as you can deduct already from the EUR 2.4 billion, which Sven mentioned. In principle, we have a base investment, which is based on our IFRS R&D capitalization, 2 percentage points of revenue growth. 5 percentage points, which I call base investment, and you have here some more details on the slide. This number does not include major front-end buildings nor office buildings like in the past. We take that number outside the model, and here you can count on about EUR 1 billion of clean room for wide- bandgap, 300 mm and some office building outside this model over the next five years. Then comes on top, what is depicted here with the 6%, which is capacity in front-end and back-end. Here, this correlates with the revenue growth and the major focus topics for this fiscal year is 300 mm, Villach and Dresden, as alluded on in the previous session. Capacity for wide- bandgap for both silicon carbide and gallium nitride. We will also take advantage of the excellent cost position in Kulim, grow there further. As said, some focused investment from insourcing from silicon foundry, but it's a low triple-digit million euro amount, which makes a lot of sense here from a commercial, but also from a strategic point of view. In total, EUR 2.4 billion investment for this year. We reconfirm our CapEx- to- sales model. There's one topic I would like to mention. In case we grow a lot more on power side, and at the same time we are limited on the foundry side, which of course give us certain relief on the CapEx- to- sales ratio. There might be a temporary overshoot, but I think over time, we will get the sufficient supply and therefore we reconfirm the target operating model with the 9% growth and the 13% CapEx- to- sales. Again, if there's more growth, there will be more CapEx because we believe in our structural growth drivers, and therefore, it's always then the next step for the next year, which is secured by the capacity we build on this year. Now I hand back to Sven, who puts it all together again in the overall target operating model. Sven, please. Thank you, Jochen. Putting it all together, Jochen said it, the target operating model stands on very solid ground. We are on track to reach the three key criteria. I don't need to repeat all that. I think you have heard it. It's based on the leading position in electrification and digitalization. It is based on the synergies. It is based on system solutions. It's based on the Cypress transaction, and it is based on a very sophisticated, well-working manufacturing strategy. The other part I just want to mention is when we acquired Cypress, we gave the guidance that we want to achieve the new target operating model within three years. It's probably fair to say that we have pulled it in by one year. Of course, supported by the nice recovery, but on the other hand, having to face also the COVID situation or the supply constraints we alluded to. Another very important element, that is not only written, you can also see how we walk the talk because we have proven that this is a finance policy which works even in the biggest M&A transaction. The financial policy of Infineon was conservative and remains conservative. There are three main elements to it. There is the rating, there is the cash position, and there's the debt position. Of course, all have something to do with each other. Starting with the overarching financial policy target, which is our investment-grade target. There was never, ever a debate to deviate from that. We want to be in investment-grade territory. That's why we did also some equity contribution when we did the transaction. Currently, you are probably aware, we are BBB- with positive outlook rated by Standard & Poor's Global. Number two is the cash position. We have a target of having always EUR 1 billion plus at least 10% of our revenues cash on hand. That would equal to EUR 2 billion. Currently, we have EUR 4 billion on hand. Why is that important? It is important not only that we can sleep well, but that we can invest at the right moment in time, that we can take the money and invest in a potential downturn for the growth which is expected to come, not being limited here in any way. Lastly, the gross debt. Our financial policy has a target of having a leverage level of below 2x gross debt to EBITDA. We have suspended that target temporarily when we did the transaction, we gave the commitment to deleverage, coming back to session one, and to reach it over the midterm. We are currently at 2.2x based on the preliminary numbers. Pretty close already. We are committed to further deleverage. That's why I'm very happy to announce today that we can pull that in as well by at least a year. We expect our gross debt to EBITDA target to be achieved already in fiscal 2022 again. As I said, walking the talk means you take that as your policy in a good or a difficult market environment, which we did. The last point in this value creation presentation before we come to the closing is, how do we want to spend the capital? I think there are not so many surprises, maybe with a little exception, because we haven't given you the dividend proposal yet. The pecking order for the capital deployment for Infineon is very clear. First priority has organic growth. We want to be able to invest in R&D. We want to be able to invest into manufacturing with a very long-term perspective. Take the Villach example. It was a very good decision in 2018. It was the right timing, it was the right technology with 300 mm, and it was the right location. That is what we mean by taking long-term views on organic growth. That's how we want to fund the attractive growth opportunities you have seen. The next priority is, and remains still for quite some time, the deleveraging. We want to continue to reduce debt until we are sufficiently below the 2x at our mid-term target. The rating space is a BBB flat. We're not that far away. We are not yet there. Number three is M&A. Before I go into the details, I want to state the obvious: no major transaction is planned. Of course, we're looking into smaller bolt-on transactions when they make sense. Making sense for us means they have to fulfill three criteria. Again, no change. Strategic fit, it needs to fit to the business. It needs to be financially a fit, so creating financial value. Lastly, a cultural fit, not to be underestimated. Many M&A transactions do not go as planned because of a lack of cultural fit. Cypress is a great example of how important that is and how well it has worked out. The other element we always have on our agenda is the shareholder return. We have a consistent dividend policy. We have returned EUR 2.7 billion over the past decade in dividends, and we are happy to announce today the dividend proposal for fiscal 2021. Of course, it is subject to Supervisory Board approval and final audit of our numbers, but we want to increase the dividend from EUR 0.22 per share to EUR 0.27 per share, which is an increase of 22%, to also give part of the growth and the very profitable year 2021 back to our shareholders who have supported us very well, who have also supported us very well when we cut the dividend in the COVID year 2020. To sum it up, you have seen in the previous sessions that Infineon has created sustainable value and will continue to do so. The next decade is well- fueled, well- powered by electrification and digitalization opportunities. We want to add more than EUR 5 billion of annual additional revenues by 2025. Our target operating model is confirmed. It is all based on a very prudent capital structure and a conservative financial policy with a target of being investment- grade and the capital deployment priorities I highlighted to you a second ago. With that, we would be at the end of our formal sessions. Now I would hand back to Alexander, who will explain to you how the next important session, the Q&A, will be done. All right. Indeed, we have come to the end of the presentation part of our Capital Markets Day. For the Q&A part, we will have to rearrange the stage here to bring all nine presenters on. That will take us a couple of minutes. During this time, we ask you to stay tuned in. The picture will get blurry, certainly not Infineon's business picture, but on your screen. Don't worry, it's nothing wrong with your eyesight. We will just reconfigure the stage here. Once again, as a reminder, for questions, please use either the text box on your screen, hit the send button, or you can also send us an email. The address is ifxday@infineon.com. See you in a couple of minutes. Hello again. Here we are for the Q&A session of the IFX Day 2021. Indeed, there have been quite many questions that we have been receiving. I will read them out and ask the fellow presenters here to provide answers in the next half hour plus. The first question that we received from the audience is, semiconductors seem to become ever more important. Do you see for your industry a golden age with less cyclicality and continuous growth ahead of GDP? Reinhard, can you take that question, please? Yeah, thank you, Alexander. Indeed, semiconductor are key nearly in everything which we find on our planet, be it a washing machine, be it the smartphone, anyhow, the computer, the automotive. It's hardly to believe that there will be no semiconductors in these devices. Semiconductor make them smarter, our life. Customers appreciate the value. They want to have it. Semiconductor also are enormously important in order to turn the CO2 planet into a CO2- balanced planet. The answer is pretty obvious. When we look back to the presentation, I think a lot of examples have been shown. We are very much believing that this ubiquitous demand for semiconductor in everything will be very helpful to, I would say, flattening, at least to a certain degree, the semiconductor cycle, and will provide to Infineon a constant growth request or necessity. Especially also when you look at what we have shown as structural growth elements. We had significantly more than we had in 2018. I think the answer is obvious. Thank you very much. Our next question is of a more short-term nature. You gave a very positive outlook for fiscal 2022, mentioning strong demand on the one, supply limitations on the other side. In this environment, how much are you able to raise prices? How much is baked into your fiscal 2022 guidance, and how sticky are these effects? Helmut, can you take that question, please? Yeah, thank you very much. I think Reinhard already said it. Customers recognize the value of semiconductors more and more. Of course, especially in times of shortage, delivery capability has its value. What we have seen is a reversal of the normal price down effect or the price down trend. At the same time, we see ourselves confronted with rising costs from foundries, sub-cons, and material prices. Those go hand- in- hand. Yes, for our current fiscal year 2022, of the incremental revenue that we have projected, that we have shown, clearly more than half of that is coming from increasing volume, from more products shipped to our customers. Yes, from pricing, there also is a triple-digit million euro effect that is considered in that overall revenue increase. Regarding stickiness, that very much differs from market to market. Where we have long-term or medium-term contractual obligations, you can expect those prices to be consistent for at least the full fiscal year. Whereas in other areas, let's say on the distribution side or the more commoditized markets, the pricing effects will be less sticky than in the other areas. All right. The next question is an operations-related one and will go to Jochen Hanebeck. You want to grow annual revenues by at least EUR 5 billion until 2025. The new Villach fab, as you mentioned, has a capacity of around EUR 2 billion. You have around 70% in-house share. When will you announce the next fab? Will it be 300 mm in Europe or 200 mm in Kulim? You mentioned ground ready. Yeah, we just opened the 300-mm factory in Villach, and the timing was perfect, so we can serve now the customers with our power semiconductor products. Now, of course, we know lead times for factories, and it's right that it's about three years. We are in the process. As we believe that economy of scale matters a lot for in-house manufacturing, you can count on that for power semiconductor, it's going to be either Villach, Kulim, or Dresden, and we will announce this in due time. All right. Thank you very much. As the target operating model is always top of mind for our investor, especially the margin part of it, an analyst is asking: You have guided for 19% segment result margin for the September quarter and provided now an outlook of around 20% for the next fiscal year 2022. Shouldn't you put a more ambitious margin target than 19% into your target operating model? Sven That is probably a question we have expected. Let me again recap that this is a through the cycle logic. It means if you want to achieve 19% through the cycle, it clearly means you need to be at 20%, 21% in very good years as well. That is all fully consistent with the model. We also should not forget that we are in a very special market dynamic. One year ago, we talked with you about EUR 600 million of underutilization cost. Just we should not forget that. That's why we believe we are on a very good path to increase the profitability further. We have pulled it in, as I said, by a year. We are fully okay with confirming the model. We have also these special effects, which also Jochen and Helmut have mentioned. On the one end, you have the price increases and the commodity price increases, which we have to digest. On the other hand, we have pricing with customers and additional value creation. I would say once this situation has normalized, if there is anything like a normalization in our world, then we will take a look at the target operating model, and then we will look at upgrading it. As I said, it's too early, but we will come back to you once the appropriate time is there. Thank you very much. Constanze, you have been a new face in this round for many of our investors. They are keen to know about the digital customer journey. You described it, what is implemented of that as of today? Where do you see the biggest efforts needed going forward? Yeah, actually, I would say the individual pieces are already there. However, it is an effort to put all those pieces of the puzzle together and to really get to a seamlessly integrated customer experience. I would say since the closing of the acquisition of Cypress, we have successfully adopted best practices and tools from both Infineon and Cypress, and we are now consolidating and integrating everything into one interface to our customers. If we have achieved that, I think then we will start to upgrade our technology platforms and interfaces, and we will also continue to work on the breadth and depth of our content and really upgrade the content we are providing to our customers. I would say to sum it up, you should expect us to invest in this domain, and this will be rather a journey, another step- change which we can make in a short time frame. All right. Another area that we probably anticipated is around wide- bandgap, especially silicon carbide. We grouped a couple of questions and would ask Reinhard as Chief Technology Officer also to take a first crack, maybe together with Jochen. Yeah. The questions are: If SiC, silicon carbide, is actually cannibalizing the IGBT business? A recap of the $1 billion target that we showed for the mid-2020s. How much of that is auto and industrial related? When are 200-mm wafers, silicon carbide wafers, going to be used? There is a supply- related question addressing the recent acquisition of GTAT by onsemi. Is it now finally, or is it more prudent to be vertically integrated? How about your supply certainty? Yeah, thank you, Alexander. A lot of questions have been around this, so let's take it from here. First of all, looking at silicon carbide, then Infineon is at a technology step which many, most of the other companies still have to do. We are in the area of trench technology. Maybe it's a little bit exaggerated, but when you look at it is similar to what CMOS has done when you move from planar to the FinFET area. Infineon believes that only technology advancements will give you the cost and performance position required in order to perform. Yes, of course, it took us a certain challenge in order to get there, and the learning is substantial. We achieved that very successfully. We also are very much believing when we start to deliver to the customer, first of all, the product the customer gets from us, he can rely on. We do not develop on the back of our customer. We can ramp as the customer requires due to this very innovative technology. We also believe that we can provide complete solutions, whatever it takes. Recently, we talked about an automotive solution which ranges from IGBT to silicon carbide, depending on the power density you require. Same size of the module, different content. We very much believe, and this is an experience we made when we introduced CoolMOS. The old technology remained and still grew. We definitely believe that IGBT will have its place. We are very sure that there are further generations of IGBT ahead currently under development, providing for the individual application outstanding cost performance. It is about solving a problem. We do not sell technology because it's fun. By the way, it's fun, but when it comes to business, it's different. Where does it fit? The next and final topic is we are willing, we are able to cannibalize ourselves. Jochen, later on, will talk about how that fits very well into the manufacturing landscape we have. The next question about where is the growth coming from? We believe that the concept of starting new technologies in a smaller scale and ramping from there, and then reuse it or then team up with automotive where the growth is much more fast and requires a highly stable technology base, is very successful. The $1 billion target, which we are seeing, is roughly 1/3 comes from automotive, 2/3 comes from industry. I think here, of course, the growth pattern over the time will change. Beyond that time frame addressed here, we will see that a utomotive's growth will significantly accelerate, and we are ready to take, while industrial will continue. The next topic is the 200-mm question. When will we use 200 mm? The challenges for silicon carbide, similar to silicon, when you think about power devices, is you need thin wafers. Silicon carbide is an even more challenging material than silicon. When you go to very thin silicon carbide wafers at the end of the processes, where if you really can add efficiency to your overall device, then first of all, you have to be able to manufacture this at this very thin layer and put still a lot of process steps on top. Of course, there is the other element. We know from all the transitions in the diameter that at the very beginning, the square inch of silicon carbide was more costly in the larger diameter than in the smaller. First of all, it was, of course, important to move 150 mm because there are a lot of more equipment was state-of-the-art compared to 100 mm. We will move on when there is a reasonable point of competitiveness in the diameter. The GTAT question is pretty straightforward. We have set our strategy to use SILTECTRA in order to get more out of less. You know that slogan. We believe that this can be a very clearly advantage. We have secured our supply for the next years, and we are believing that to a certain degree, yes, time-wise, it may be or will be captive market, but there will be a general market being developed. With this, I want to hand over the question to Jochen regarding the manufacturing in 200 mm. Are we ready to move? Absolutely. It's a matter of the substrates availability. As I outlined in my presentation, we do have 6-in and 8-in capability, volume capability in Villach for silicon. We do have it in Kulim. The manufacturing landscape is prepared. It's all about the technical aspects which Reinhard alluded on, and of course, its volume availability and the price point has to be in the right range, but then we can move in this direction as well. All right. A U.S. analyst is wondering, when do you think your own product lead times might shorten? Helmut, can you take that? Oh, yeah. Very happy to. Thank you, Alexander. I think this is indirectly a question as to what we expect and how we expect the market behavior to change. Let me give you a few facts about Infineon's current market and revenue and order picture. Our book-to-bill for the quarter that has just changed has been very strong. As strong pretty much as we ended the third quarter of our fiscal year. First fiscal year quarter ending book-to-bill was comparable to that in the third quarter. Our order book is at record high levels, and we don't see cancellations. All in all, I'd say I have no factual indication for the market to turn. Of course, I think the current situation will not last forever, but there is no visibility of the market changing anytime soon. My expectation is that the demand being at such high levels will be transporting well into the current fiscal year, well into fiscal year 2022. Certainly will only be changing significantly once supply matches demand more clearly. As capacity comes online, and as you can see with our own investment that we have made, Jochen has been talking about the investment in Villach, we see that to be more likely to come earlier on the analog and power side than it does come on the CMOS side. I would clearly expect this to last quite a time from now. Very well. Thank you. The next one is probably a quick one and going to Sven. German energy prices are rising. What about the impact in your cost base? That's a quick one, but not an easy one given the dynamic is so high that every number I give you today could be different tomorrow. Based on what I said earlier, that we have some long-term agreements, some spot transaction, I would say it's a low double-digit amount. Perhaps, Sven, you can also take the next one, which is: how can we think about the CapEx- sales ratio in fiscal 2023, 2024, as the 2022 ratio is significantly higher than 13% guided for the medium- term? I would probably take it together with Jochen, I think Jochen explained the model very well. The 13% are relevant when you have a growth of 9%. Again, in a year where we grow mid-teens, the number can very well be at 17%, 18%, and you are still within the model, just to highlight that again. Otherwise, I think it's too early to already mention now, in early October, a number for 2023, as we are already a little bit ahead of time. So please give us here more time to first understand what also Helmut said, the market dynamics, the development. It is in any way linked and dynamic. Jochen, anything? Okay. Good. Yeah. As also to be expected, a number of automotive-related questions are reaching us. Peter, the next one would then be for you. The global car production should finally grow by a very low percentage in 2021, revised down from +8% expected by industry analysts at the middle of August due to stronger than expected impact from chip shortages. Are you afraid that customers are hoarding your chips while waiting for others that are needed to finish half-built cars? Actually, I do see two things happening in parallel. On the one hand side, it's true that if the entire supply chain is preparing for a certain production mix or a car production plan to be executed, and then on very late minute, there are some parts missing and the car cannot produce, and the OEM is switching from one platform to another platform, then there is some temporary, let's say, hoarding or buffering of that electronic circuit units. Over that small temporary activities in terms of making sure that on a daily and weekly basis, the car manufacturing lines are well-balanced, there is the underlying demand-supply constraint. The current reduction of the expected car production for this year shows it really that there is much more demand. There's a higher demand compared to what all OEMs together can produce. Despite that, what you mentioned in the question, hoarding aspects, there's a much higher demand there, and this will be flattening out in the next months to come. Very well. Thank you. As we also covered the IoT in our digitalization session today extensively, Thomas, there is a question going into your direction. Does your IoT solutions portfolio also cover embedded systems or are embedded systems part of your R&D roadmap? That's a good question, actually. Thank you. What we are providing, and you have seen this circle with the capabilities that we have. We have all components that you really need for an embedded system to move forward. Depending on the customer demand, we really provide different value creation steps in there. Starting with the sensors, going via the MCUs, the connectivity, the security, up to the actuators or the power devices. From that perspective, we provide these building blocks, and we go beyond the semiconductor, if required by the customers. This is where what I mentioned, the ModusToolbox or development environment plays into. We provide there the components that customers then can really finally use in there. Actually, one thing that we just announced is the so-called CIRRENT Cloud ID. That's actually going even one step further, and it's necessary to provide authentication into the cloud, so you can build in a chip that will help to authenticate your device in the cloud. Right. Thank you very much. Our next question is again, a CapEx-related one. Can you please describe the use you are going to make of the 2022 CapEx budget? Everything else being equal, meaning not talking about TSMC support, how much additional sales you can extract from this CapEx for 2023? Jochen. To give you a little bit of insight into the CapEx budget. Out of the EUR 2.4 billion, roughly EUR 1.9 billion is planned, and again, it's preliminary numbers for the operations part, front-end and back-end manufacturing. Out of this EUR 1.9 billion, EUR 1 billion is planned for capacity and structure invest in front-end, and about EUR 100 million in terms of buildings, finishing buildings, preparing the next step. That gives you a bit of a feeling. It's very heavy on capacity expansion and, therefore, we are very well- prepared for the subsequent fiscal year. If you want to have an idea on that, I showed you the graph on the Villach and Dresden capacity ramp-up. It's drawn to scale, and there you can get an idea on the power side, what we can add on, and of course, a similar ramp rate can be assumed in Kulim. Overall, we do not give guidance now for the following fiscal year. Please understand. Thank you. The next question is again from an analyst interested in wide- bandgap, this time specifically GaN. Why hasn't Infineon been more aggressive with offering GaN solutions in broad markets? Is it a matter of timing? On GaN particular, can you explain to us what is your partnership relationship with Panasonic? Are you licensing the naturally off MOSFET design, and is it an exclusive license? Maybe, Reinhard, together with Andreas, you're taking this? Yeah. I will share it with Andreas, and let me start first on the technology, and Andreas will jump on the market. Interesting enough, silicon carbide is moving into the market much more quickly than gallium nitride. The obvious difference is that gallium nitrides make the difference when you modify the system in total. Silicon carbide is very much, I would say not completely, but you replace one by another device, and almost much quicker in adopting it. Gallium nitride is, especially in those areas where you think about power supplies for servers, and Andreas will talk about this, are this systemic integration, very capable. The offering of gallium nitride, here we started very early, but the market took much longer because customer has to modify significantly. Now it's taking off. The next question was about how much do we partner with Panasonic. You may remember when we bought International Rectifier, one element was the gallium nitride within. Parallel to this, we already had been in discussion with Panasonic in order to see how we can accelerate the learning. We believe that our gallium nitride technology is, first of all, highly performant, much more reliable than anything else in the market, and it requires, interestingly, a very broad portfolio for lower voltages, middle and high voltages, as well completely integrated system. You see, you need a very broad portfolio in order to get it going. The license with Panasonic is very attractive because they were very early in the market, and we learned together. Some of the elements in this current technology belong to us, some we have. The license is not exclusive. Again, here, maybe Andreas, you talk about, I say, the way to the market. Yeah. The gallium nitride market is still pretty much in its infancy, if you will. Having said that one, so the way how we look at this is as follows. Having learned quite a lot out of, and also silicon carbide finding its way towards the market, we put a lot of effort into choosing partners, partnership customers, innovators, game-changing customers, in order to then jointly find out sweet spots for gallium nitride and making gallium nitride-based solution ready in order to serve with topics such as better energy efficiency, higher power density. However, robustness and reliability as applications such as servers or chargers are requiring it. We put a lot of effort into jointly discussing with customers when is an optimum rollover from silicon-based solutions into the new material system. I'm very much convinced that Infineon is ready while we speak. Reliability going forward is one of the names of the games. I think here we are pretty much the leaders. Customers come to us and say, "Hey, Infineon, go with us. Are you ready?" We say, "Yes." Technology is here. We have the driving circuitry know-how. We have the interconnect know-how as far as packaging is concerned. We have the IP portfolio. Last not least, we service the entire system with a unique solution combining them also our patent portfolio. Capacity as another factor is also name of the game. Ready to start. Maybe in addition to it, Andreas already mentioned it briefly. What you see here, especially in gallium nitride, you have to understand the power supply in total in order to develop the right technology, the right product. You also have to understand the solution and the system in order to support the customer to make the changeover. It is not a natural step for our customers. Here you see one very important example, which is of course much broader, on how we are more successful with this Product-to-System thinking. All right. Thank you very much from the far end of the group to the near end here. Thomas, another question regarding CSS. How long will it take to bring CSS up to group margin level given current restrictions on capacity, and what will be the main contributors? Okay, thanks for that question. I think we have seen quite some good steps into this direction. We have seen between Q3 and Q4 of our fiscal quarter, due to the additional capacity that we were able to secure as well as through price measurements, we saw an increase. This improvement of the gross margin as well as the improved OpEx- to- sales ratio is bringing us for Q4 into the high- teens already. We expect this. Momentum to move forward also into the next fiscal year. However, in 2020, let's say, with the publicly announced increases, and what Jochen already mentioned on the delivery of the silicon foundries, we see a certain softening, but clearly ambition here. All right. Thank you very much. Peter Wawer. The investors seem to recall the electrification session quite well, and one of them is asking regarding clean energy. You show the additions as an average number for the next 10 years. What do you expect near- term, 2022 and 2023, in renewables? In your presentation, you've shown huge upside for renewables in case politics go for a net zero scenario. Will the necessary capacities for rotor blades, PV modules, et cetera, be available at all? Yeah, thank you for this question. I think if the political will is there, the capacity will be there as well. While we have clearly seen record levels on renewables, we expect that also for the now starting fiscal year, and of course the market are considered in calendar years, for calendar year 2022, we believe another very strong, maybe another record year for PV. There is no reason why the growth should slow down, because simply costs continue to go down for PV installation. On wind, the picture is slightly different because the subsidy scheme which ended in 2022 leads to decrease in market as we speak, but the mid-to-long-term trajectory is completely intact. Also here we see, we expect in the years to come, continuous growth. Now you asked a question about potential limitations due to the supplier landscape. Of course we know supplier landscape is affected in all dimensions as we speak. Again, if there's a long-term planning horizon, if there's the clear will and the clear demand from governments and of course also from the public to invest into renewables to achieve Paris climate targets, for example, I'm pretty sure that the industry will be able to provide the capacity needed, including, of course, us, related to semiconductors. All right. Thank you very much. Nearing the end of our Q&A session, we have time for a couple of more questions. The next two I can see here are automotive- related. Hence Peter Schiefer, would go to you. The first one being, given EV penetration growth, when do you expect xEV margins to catch up with the ATV divisional level? Similarly, when might ATV margins go towards the corporate levels? Yeah, I think you all know that we started very early to invest into the electro mobility. We basically pioneered that application. That means we invested a lot in the innovation and technology, we invested a lot in the broad product portfolio, and we invested a lot in the manufacturing landscape. This all had a price and this was seen in the margin. What we see now is that we benefit from them. Take, for example, 2020. 17 out of the 25 most sold plug-in hybrids and pure electrical cars are using Infineon products. We have by far the broadest product portfolio, and this is not only in the scalability of the power devices. This includes the drivers, the sensors, the microcontrollers. The entire P2S game, the system game, plays in our favor there. Also in the next two years, there is roundabout, alone in Europe, 35 new models launched with our products in there. The market is now really taking momentum, and you see that with all these regulations that is fueled. When it comes to margins, what did we do in the last year? We worked on the one hand side on renegotiation of contracts which are not having been in our favor. We worked on cost reduction. We also worked on portfolio optimization and became a very important step towards matching the average automotive margin. We are well on track with our activities, and we have the broadest portfolio, and we will leverage that not only in the IGBT, but also in the silicon carbide and in the entire system itself. Terrific. Thank you very much. As promised, another automotive- related question. 10% ATV growth looks quite conservative, especially given your leading EV and ADAS positions. Leaving the car production numbers aside, what is the content growth opportunity per car until 2025? Yeah, actually, I would say from the old 10% throughout the cycle model, what we see now is that the number of car production may be a little bit less of important, and the increase in the semiconductor content is a bit higher. As mentioned earlier, you will see that the xEV applications are growing by 20%. The ADAS and AD applications will grow. There's a lot of fast-growing application in the classical comfort applications. On the other side, we still have some products which are only linked to the car production, and we will not see a lot of growth there. That's why I really feel comfortable that through the cycle, the 10% is a number which we are very comfortable and convinced about it. Maybe there's a bit of an offset. All right. We have one more question related to the manufacturing strategy. Can you elaborate a bit more on the focused insourcing and outsourcing? Which product families, which divisions are there affected? Where do you see the greatest changes? Is it a one-off in fiscal 2022, or is it a change through cycle? Jochen, I think. The basic manufacturing strategy remains in place. We will invest in-house for power semiconductors and sensors wherever this is differentiating. On the outsourcing side, we will continue to work with our outsourcing partners, and the share in terms of outsourcing will even increase. I see two differences or two modifications. One is really this area of 130 nm, and that covers automotive as much as the other divisions, PSS, IPC, where it makes sense to invest a certain amount in order to get these strategically important products for our system play in-house, also as the foundries show the least appetite to invest into these areas. Furthermore, we will have to secure long-term, also with prepayments, capacity corridors at the foundry partners in 65 nm, in 40 nm, and in 28 nm. I would call it a modification of the previous model as a result of the current market situation, which we expect in the mature nodes to last for a while, as the capacity buildup will take time and the majority of the foundry investment will be on 28 and further to smaller nodes. All right. I think looking at the time, we have space for one final question. Unsurprisingly, it's about wide- bandgap again. You said you have won four silicon carbide platforms by now for EVs. To help us get a sense of your success rate, can you outline how many auto OEMs have now selected silicon carbide suppliers for their EV platforms? Maybe Peter, together with Reinhard. First of all, I think it's important to understand that the silicon carbide is coming into the market. This is a strong growth driver. IGBT will have its place in the market, silicon carbide is strongly growing. I expect that by 2025, about 30% of the market is converted already in silicon carbide, 70% will remain still in IGBT. It's a huge growth potential, and here it's very much important we can leverage our big customer base, which we established over the last years in IGBT. We basically are talking to each and every OEM on that transition. We support Tier 1s on this transformation from IGBT i nto silicon carbide. This big scalable product portfolio is really helping us. We can really help the customer to have an entire landscape in all their models. With that, I think it's on us to win further programs like we have won so far. There is for the timeframe 2025 related to regulations, there are still a lot of OEMs which are in discussion to transform. A lot of these programs are not yet sourced. All right. That concludes now our Q&A session. To the extent we have not been able to answer all your questions, please feel free to contact the Investor Relations team for any follow-ups. It also concludes our CMD, and as you know, the three letters stand for Capital Markets Day. They could also stand for Clear Messages Delivered. We hope that in your view, we have achieved this goal. Reinhard is now going to wrap up the main messages in his farewell address. Thank you very much, Alexander. First of all, I want to make some remarks which will be not shown on the slide. When you think about Infineon, then please look, this team standing in front here is making the real difference on what we do. We have to collaborate in order to achieve system, in order to think about how we create value across the division. How do we manufacture it, how do we introduce the digitalization? How we can refinance it and I think here make a huge difference in the market moving forward. All of this is paying into what we are addressing. First of all, again, and I think you have heard it, seen it, felt it from the team, how enthusiastic we are. Electrification, the top topic for that planet. We are a key enabler. We are part of the solution. We, to dare to say, are the solution. Of course, without being able to harness the electrical power, it will go nowhere. Digitalization together with electrification makes the difference. Of course, digitalization also makes the difference in order to deliver more, to deliver more value to the customer. Again, both of it makes more out of less. It's a very old slogan, but I like these old slogans still surviving. The next topic is the long-term perspective is paying off. I think here what you see, the strategies which we are talking about had been in its base created many years ago. We are tailoring it. We are developing it further. Some of it is also not existing anymore, so it is a constant change. Again, what we are doing here with the key elements, enhancing the company by acquisition, introducing new technologies, and like we have talked about now, moving into the digital age as a company. Of course, it's not that we now start. It is about getting the arms around. Even more important, we are a cyclical and structural winner. We address topics which always has been of importance, but we are ahead of many others. We are ahead of those who thought in bits and pieces, in single products. We think of solutions. We think what else is necessary. The acquisition of Cypress very well fits into this. This is how we think. It's also interesting. You could, I would say, would like to be part of our discussion where we think about what else is needed, then we think about when will IBC take off? When will silicon carbide and gallium nitride take off? Being ready when it comes. Sometimes, yes, we are late, and we are able to catch up. Especially this topic of P2S. This, for me, it's unbelievable. I can remember when we set up the company in order to be organized along markets. Purely automotive, Peter had not to talk to anybody, power supplies, industrial drives, silos. Silos sounds bad. Now we think about complete solution, how the products of Thomas contribute to the products of Andreas. Can you think about a ToF solution without a micro? Without being connected to the internet? Hardly. Again, this evolution took some years to get there, but it's in the heart of the company to think. The interesting part is, yes, of course, we enable solution, but similarly, we sell products. Maybe sometimes we understand better how an application evolves and then moves on when ahead the time is due to it. All of these, this P2S as a philosophy is a huge enabler. ESG, to be very honest, for me, when ESG popped up, when we were asked: "What are you doing? When do you commit to CO2 reduction?" I say it's obvious. Isn't it obvious that we have to think global in order to reduce CO2? It's not about only in order to have a solar panel in front of my balcony. Yes, maybe too. We are committed to enable a CO2 reduction, a zero CO2 globally since quite some time. We had working in our manufacturing environments. It didn't take the need in order to think about because we believe to reduce everything which can be done in order to become better on it. CO2 is playing into our hand as it is ESG. Many of these topics highlighted there is something which is in the core of the company. What also belongs this topic of diversity into this. We believe that a team, as you see here as the Infineon team, everybody of us is different. Everybody has a different nature and competence. Together, we are much stronger than a single person. This belongs to each of us. Finally, for me, all of this, of course, only counts. Here I come to some general comments at the end which matter. Why do we look at such significant growth? First of all, we want to address topics and markets which grow. That enables growth. We want to better than the rest. That enables additional growth. Think about a company which is on markets which are shrinking. Think about a company which is not able to compete because having not the right answer to the market. Therefore, growth matters. Growth is not everything. Profitability matters as much. The team is proud of what we have achieved over the years in matters of productivity, in matters of capital efficiency, but we want to continue our growth path. Especially, we want to make use of the unique situation here currently. The invest which we are doing, we have promised our customer, "Go to Infineon. We will be able to support you in your growth. Many people come. Many people who left, come back. This is very good feeling. With this, I hope we could convey how much which we are convinced about we do, how much this is a mission which we are on. With this, I want to conclude in the name of my colleagues, I want to say thank you for staying online. Goodbye.