Infineon Technologies AG — AGM Information 2011

Feb 20, 2011

Annual General Meeting Infineon Technologies AG

Peter Bauer, Chief Executive Officer Infineon Technologies AG

Munich, February 17, 2011

Infineon is in a better shape than ever before

Restructuring

Refinancing

Portfolio measures

Focus on energy efficiency, mobility and security

Turnaround – Infineon on firm foundations

• Ambitious aims
• We created the change ourselves
• We brought the company into shape

Success thanks to quick and determined action

Sale of WLS: Portfolio optimization successfully completed

• Investments necessary for becoming No. 1 in the market too high
• Attractive purchasing price of 1.4 billion U.S. dollars
• We created enormous value for all stakeholder

Asia most important market, especially China

• Two-digit growth rates
• Worldwide biggest automotive sales market in 2010
• Chinese solar industry today bigger than the German one
• Worldwide leading wind power companies from China

Revenue share in Asia 42 percent, further expansion of our presence

• With revenue share in Asia front runner among all DAX companies
• New business entity in Beijing
• Customer focus on tight cooperation with partners on the spot
• "Local Citizen": Even stronger integration in local structures

Fiscal year 2010 – one of the most successful

Revenue increased by more than 50 percent year-on-year to 3.3 billion euros

for Infineon

• Net income of 660 million euros
• Ambitious target of 15 to 20 percent return rate almost achieved
• Dividend-paying ability established

Profitable, growing and solid company

Share price doubled

Infineon share in EUR

Feb. 11, 2010 Feb. 16, 2011

Application of funds

Organic growth – mainly expansion of manufacturing capacities

Allowing our shareholders to benefit

Considering options for acquisitions

Energy efficiency Mobility Security

Automotive

Industrial & Multimarket

Chip Card & Security

CoolMOS – Contribution to preserve the resources

• Increasing the energy efficiency in many different applications, for example:
• PC power supplies
• Server
• Solar power inverters
• Lighting systems

Smart grids enabled by innovative semiconductors

Integration of renewable energy 1

Advanced transmission 2

Grid monitoring and control 3

Energy storage and EV-charging 4

Smart Metering and appliances 5

Efficient consumption 6

• Enormous investments in modern fleet of trains in China, but also in Europe
• 10 new Siemens Velaro trains for Eurostar
• Each train with 130 Infineon IGBTs totaling up to 100,000 euros in value

Electric mobility – environmentally friendly, only realizable with semiconductors

• Realistic alternative to cars with combustion engine
• Electric bikes already a mass market today – with chips from Infineon

• Infineon is party to almost every electric car project outside Japan

• New German ID card with security technology Integrity Guard

• Innovative approach: Not only data is encrypted, but also computing operations
• Previously unheard-of level of security
• Nominated for Innovation Award of German Industry

Conclusion – attractive company with the right future strategy

• Balance sheet is healthy
• Costs are under control
• Business runs profitably
• Key technologies and products for energy efficiency, mobility and security

Infineon supplies the innovation components for the world of tomorrow