Infineon Technologies AG

Earnings Release • Nov 14, 2012

Fourth Quarter FY 2012 Quarterly Update

Infineon Technologies AG Investor Relations

Infineon at a Glance

Growth Outlook

Results and Outlook

Disclaimer:

This presentation contains forward-looking statements about the business, financial condition and earnings performance of the Infineon Group.

These statements are based on assumptions and projections resting upon currently available information and present estimates. They are subject to a multitude of uncertainties and risks. Actual business development may therefore differ materially from what has been expected.

Beyond disclosure requirements stipulated by law, Infineon does not undertake any obligation to update forward-looking statements.

Revenue Split by Division

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Decreasing Segment Result Margin due to High Investments

			[EUR m]	Q3 FY12	Q4 FY12	FY 2012
		Revenue	990	982	3,904
		Segment Result	126	116	527
		SR Margin	12.7%	11.8%	13.5%
990	982	[EUR m]	Net Income*	82	138	427
			Investment	158	246	890
126		116	FCF from cont. operations	-22	47	-219
Q3 FY12		Q4 FY12	Gross Cash	2,150	2,235	2,235
Revenue Segment Result			Net Cash	1,907	1,940	1,940

* Net Income includes "income from discontinued operations, net of income taxes" in Q3 FY12 EUR -8m, in Q4 FY12 EUR 9m and in FY 2012 EUR-5m. Net Income in Q4 FY12 includes income tax benefits of EUR 52m.

Tight Customer Relationships are Based on System Know-how and App Understanding

Infineon Holds Top Positions in All Target Markets

Calendar year 2011. Source: Strategy Analytics, April 2012.

Source: IMS Research (an IHS company), July 2012.

Calendar year 2011.

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Calendar year 2011.

August 2012.

Source: IMS Research (an IHS company),

Infineon at a Glance

Growth Outlook

Results and Outlook

New Era: Multiple Factors Driving Demand for Power Semiconductors

'90 – '10

'10 – '30 Changes

• Electrification of powertrain fuels demand for high-power semis in cars and doubles silicon content.
• Shift towards renewable energies requires orders of magnitude more high-power semis per MW of power generated.

Stronger demand for goods containing power semis due to faster increase in standard of living in BRIC countries.

Despite Near-Term Outlook Cuts, Long-Term Prospect Still Healthy

Source: IHS, October 2012.

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Rising Semiconductor Value Per Car Drives Market

Source: Strategy Analytics, October 2012; including semiconductor sensors.

Every Electricity Conversion Step Requires Infineon Components

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Infineon at a Glance

Growth Outlook

Results and Outlook

After Record Revenues in 2011 Sales during 2012 Stay Almost Flat

ATV Remains on High Level Steady Recovery in PMM

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Automotive: Infineon Biggest Market Share Gainer Amongst All Players in 2011

Source: Strategy Analytics, April 2012 * According to Strategy Analytics this ranking also includes Russia, South America, Australia and further countries.

Increasing Adoption of Infineon"s 77 GHz SiGe Technology for Radar Applications

RASIC serves rapid growth in advanced driver assistance systems

• Infineon's Radar System IC (RASIC™) series consists of a group of highly-integrated functions for 77 GHz automotive radar sensors.
• With more than 1m devices shipped since 2009, Infineon is a market leader today and strengthens its future position with the recent release of a "77 GHz radar-in-package".
• Multiple design-wins have been recorded at major automotive suppliers in the USA, Europe and Asia.

First 77 GHz radar solution in eWLB SMD package.

Bringing 77 GHz performance to the short- and mid-range market.

Infineon"s Digital Power Management ICs Now Ramping for AC/DC Applications

Enabling high-efficiency AC/DC conversion while reducing system costs

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Integrity Guard has been nominated for the "German Future Prize 2012"

Integrity Guard – Security for the connected world

• Infineon"s innovative Integrity Guard digital security technology has been nominated for the "German Future Prize 2012 - The Federal President`s Award for Innovation and Technology".
• This award recognizes outstanding technical and scientific innovations from Germany. Nomination alone is regarded as the highest commendation for technology and innovation in Germany.
• Integrity Guard is based on digital security and displays two revolutionary innovations:
• The completely encrypted storage and processing of on-chip data combined with
• two CPUs constantly checking each other; and a full digital error-detection system.

Guidance for Q1 FY13 and FY 2013

Investments in FY 2013 About EUR 400m.

D&A in FY 2013 About EUR 470m.

* This outlook is based on an assumed Euro/US Dollar exchange rate of 1.25.

OpEx Development

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Working Capital

Trade and other receivables Trade and other payables

* For definition please see page 28 in appendix.

Inventories DOI*

Investments in FY 2013 to Be Reduced Significantly

* For definition please see page 28 in appendix.

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* Consists of convertible bond (nominal value EUR 113m; book value EUR 100m).

• Gross cash increased due to Free Cash Flow and an increase of debt of EUR 52m. Net cash impact correspondingly lower.
• Bought back EUR 5m nominal of convertible bond for EUR 12m.
• No buyback of shares during the quarter. But put options for 5m shares lapsed with EUR 2.2m premium received.

Average Price Per Underlying Share Below Volume Weighted Average Share Price

Total Gross Capital Returns

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Value Creation of Infineon by Sustainably High RoCE Above WACC

* For definition please see page 28 in appendix.

Notes

Investments =

'Purchase of property, plant and equipment"

• 'Purchase of intangible assets and other assets' incl. capitalization of R&D expenses

Capital Employed =

'Total assets"

• 'Cash and cash equivalents"
• 'Financial investments"
• 'Assets classified as held for sale"
• ['Total Current liabilities"
• 'Short-term debt and current maturities of long-term debt"
• 'Liabilities classified as held for sale"]

RoCE =

NOPAT / Capital Employed =

• ('Income from continuing operations"
• 'financial income"
• 'financial expense")
• / Capital Employed

Working Capital =

('Total current assets"

• 'Cash and cash equivalents"
• "Financial investment"
• 'Assets classified as held for sale')
• ('Total current liabilities"
• 'Short term debt and current maturities of long-term debt"
• 'Liabilities classified as held for sale')

DOI (inventory days; quarter-to-date) = 
('Net Inventories' / 'Cost of goods sold') * 90

DSO (days sales outstanding; quarter-to-date) = ('Trade accounts receivables (net)' / 'revenue') * 90

DPO (days payables outstanding; quarter-to-date) = ('Trade payables' / ['Cost of goods sold' + 'Purchase of property, plant and equipment']) * 90

Worldwide Frontend Production Sites

Copyright © Infineon Technologies 2011. All rights reserved. Page 29

Worldwide Backend Production Sites

Investments Driven by Capacity Additions and Maintenance

Breakdown of total investments in FY12 of EUR 890m

Copyright © Infineon Technologies 2011. All rights reserved. Page 31

Infineon Has a Long Track Record in Responsibility and Sustainability

UN Global Compact Initiative

As one of the first semiconductor companies worldwide, Infineon joined the Global Compact Initiative of the United Nations in 2004.

Dow Jones Sustainability Index

Infineon is currently Europe"s one and only semiconductor company member in the Dow Jones Sustainability Indexes.

Certifications

Based on our efforts for resources management, safety and health standards, Infineon received the EN ISO 14001 and OHSAS 18001 multi-site certification.

Date	Location	Event
15-16 Nov 2012	Barcelona	Morgan Stanley TMT Conference
20 – 21 Nov 2012	London	Company Roadshow including presentation by Dr. Helmut Gassel Division President, Industrial Power Control (IPC)
27-28 Nov 2012	Scottsdale, AZ	Credit Suisse Technology Conference
06 Dec 2012	London	Natixis Payment Revolution Conference
31 Jan 2013*		Q1 FY13 Results
28 Feb 2013	Munich	Annual General Meeting
02 May 2013*		Q2 FY13 Results
30 Jul 2013*		Q3 FY13 Results
12 Nov 2013*		Q4 FY13 and FY 2013 Results

* provisional

Institutional Investor Relations Contact

	Ulrich Pelzer Corporate Vice President Finance, Treasury & Investor Relations	 +49 89 234-26153  ulrich.pelzer@infineon.com
	Joachim Binder Senior Director Investor Relations	 +49 89 234-25649  joachim.binder@infineon.com
	Holger Schmidt Manager Investor Relations	 +49 89 234-22332  holger.schmidt@infineon.com
31 July 2012	Bernard Wang Manager Investor Relations Copyright © Infineon Technologies 2012. All rights reserved.	 +49 89 234-22669  bernard.wang@infineon.com Page 34

14 Nov 2012 Page 34 Copyright © Infineon Technologies AG 2012. All rights reserved.