Infineon Technologies AG

Earnings Release • Feb 13, 2012

First Quarter FY 2012 Quarterly Update

Infineon Technologies AG Investor Relations

Infineon at a Glance

Growth Outlook and Margin Resilience

Results and Outlook

Revenue Split by Division

01 Feb 2012 Copyright © Infineon Technologies 2010. All rights reserved. 2011

Segment Result Margin of 15% Despite Sales Decline

	[EUR m]	Q1 FY11	Q4 FY11	Q1 FY12
	Revenue	922	1,038	946
	Total Segment Result	177	195	141
	Total SR Margin	19.2%	18.8%	14.9%
1038 946	[EURm] Net Income*	232	125	96
	Investment	131	273	294
	FCF from cont. operations	4	97	-234
195 141 Q4 FY11 Q1 FY12	Gross Cash	1,669	2,692	2,337
Revenue Segment Result	Net Cash	1,293	2,387	2,068

* Net Income includes "income (loss) from discontinued operations, net of income taxes" in Q1 FY11 EUR 83m; in Q4 FY11 EUR -122m and in Q1 FY12 EUR -8m.

Tight Customer Relationships are Based on System Knowhow and App Understanding

Distributors

Infineon Holds Top Positions in All Target Markets

Source: Strategy Analytics, April 2011.

Source: IMS Research, August 2011.

Source: IMS Research, August 2011.

Infineon at a Glance

Growth Outlook and Margin Resilience

Results and Outlook

New Era: Multiple Factors Driving Demand for Power Semiconductors

'90 – '10

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

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

Growth: Rising Global Car Production and Silicon Content Drive Market

Source: Strategy Analytics, Jan. 2012

• Highest growth in car units out of APAC.
• Semiconductor content per car: USD 319 in 2016 versus USD 290 in 2011.
• Automotive semiconductor market growth drivers: powertrain, safety and body.

By Region, Main Growth Drivers are BRIC Markets and Recovery in North America

Source: Strategy Analytics, January 2012; includes semiconductor sensors.

Electric Vehicles and Hybrid Electric Vehicles Drive Semiconductor Demand

Fuel cost, CO² reduction and price are main drivers for EVs and HEVs.

• Semiconductor BOM of an EV/HEV is 2 to 3 times higher than total auto semiconductor BOM.
• 50-80% related to IGBT and diode chips in state-of-the-art module packages.

BoM = bill of material ICE = internal combustion engine

EV = electric vehicle; HEV = hybrid electric vehicle

Copyright © Infineon Technologies 2010. All rights reserved. 2011 01 Feb 2012 Page 11

Infineon is Involved in Every Electrical Energy Conversion Step

About 10% Growth p.a. for Cycle Average Expected for Infineon

Infineon: ~10% growth p.a. cycle average

Sustainable Profitability: Targeting 15% Segment Result (SR) Margin for Cycle Average

Infineon: ~20% SR margin under normal industry conditions ~15% SR margin cycle average

¹ For more information please see pages 25 – 28 in appendix. ² Under normal industry conditions.

01 Feb 2012

Copyright © Infineon Technologies 2011. All rights reserved. Page 14

	FY 2011	FY 2012e	Longer term
Revenue	EUR 3.997bn	Decreasing by mid single-digit %	~10% growth p.a.
Gross margin	41.4% < 40%		Flat or increasing vs FY 2012
R&D	11.0% of sales	Increasing by 5 – 10%	Low-to-mid teens % of sales
SG&A	11.2% of sales	Increasing by 5 – 10%	Low-teens % of sales
Total Segment Result margin	19.7%	Low to mid teens %	Increase vs FY 2012

Copyright © Infineon Technologies 2011. All rights reserved. Page 15

Infineon at a Glance

Growth Outlook and Margin Resilience

Results and Outlook

Q1 FY12: Maintained Solid Total Segment Result Margin

All Segments Contribute to Total Segment Result

IMM: Both Low- and High-Power Demand Affected by Inventory Correction

CCS: NFC Leader and Working on Shrink Roadmap

Guidance for Q2 and FY 2012

Outlook Q2 FY12 (compared to Q1 FY12)

Outlook FY 2012 (compared to FY 2011)

Revenue

Revenue to be flat to down slightly quarter-on-quarter

Mid-single digit percentage decline.

Total Segment Result Margin

Down broadly 1 percentage-point.

Low-to-mid teens percentage.

Superior Growth and Profitability Allow Sustained Investments Over the Cycle

Superior growth and profitability

• Focus on secular growth drivers, e.g. renewables, e-mobility, energy efficiency.
• Leading market share and competitive strengths.
• 10% growth and 15% SR margin on average over the cycle.

Sustained investments for future success

• Counter-cyclical investments, selling and R&D to enable further share gains.
• Investments secure capacity for future growth and competitive advantage.
• 300mm power discretes; 200mm, quality, innovation, automation etc.

Strong returns

• Value creation: RoCE well in excess of our capital cost, 27% in Q1 FY12.
• Capital returns through a.) dividend payments,
• b.) share buy-back,
• c.) Convertible Bond 2014 buy-back.

4 Reasons for Sustainable Profitability ─ High Barriers to Entry #1

Long product life cycles

• For many markets we address, deliveries of semis need to be ensured for very long periods of time:
• for car industry: 7 to 24 years;
• for train industry: about 15 years.

System knowhow and understanding

• Both deep and wide know-how and understanding of our customers' applications needed for making best in class solutions:
• e.g. HEV/EV needs both automotive and industrial expertise.

Strong quality and reliability req's

• Products need to reliably perform well in the field over longer periods of time:
• airbag reliability required as long as the car is in use;
• wind turbines should function 30 years.

Semiconductors – Core Enablers of Innovation and Higher Functionality #2

Energy Efficiency Mobility Security

Power supplies

More advanced power semiconductors allow smaller, denser, lighter and more efficient power supplies.

VSD

More precise and efficient RPM-control versus mechanical transmission.

Recuperation

Implemented in trains for years; brought to cars by the advent of HEV/EVs.

Power steering

EPS is replacing hydraulic-mechanical power steering allowing more flexibility in car design and less power consumption.

Identification

Chip-based passports and national ID cards allow much higher level of security compared with paperonly ID cards.

Brand protection Chip-based authentication of accessories, e.g. batteries, cartridges.

Semis Represent a Negligible Part of the Value of the End Product #3

Infineon's Core Competencies ─ Power Semiconductors and eControl #4

Design and manufacturing of Core competence power power semis tightly coupled

Manufacturing

Design

• Thin-wafer technology
• Super-junction MOSFETs
• Silicon-Carbide (SiC)
• IGBT module packaging

Core competence eControl

• Automotive real-time 32-bit microcontroller (TriCore™) and multi-core design (AURIX™).
• Industry microcontroller with premium peripheral functions.
• Low-power security controller.

IMM Split Into Two New Divisions as of 1 January 2012

Copyright © Infineon Technologies 2010. All rights reserved. 2011

Pro-Forma Historical Figures for IPC and PMM

Copyright © Infineon Technologies 2010. All rights reserved. 2011 01 Feb 2012 Page 30

OpEx In-line With Target Operating Model

Working Capital

Trade and other receivables Trade and other payables

^* For definition please see page 36 in appendix.

Investments Remain High to Exploit Growth Potential

* For definition please see page 36 in appendix.

• Gross cash decreased due to negative FCF, capital returns of EUR 70m and additional debt reduction of net EUR 23m. Net cash impact correspond. lower.
• Fully diluted shares were reduced by 1% through buy back of 3m shares with put options and nominal EUR 19m Convertible Bond (underlying shars 8m).

Capital Returns Through Convertible Bond 2014 Buy Back

Notes

Investments =

'Purchase of property, plant and equipment'

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

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

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 * preliminary date	Location	Event
08 Mar 2012	Munich	Annual General Meeting
03 May 2012*		Q2 FY12 Results
15-17 May 2012	Boston	JPMorgan Global TMT Conference
5 Jun 2012	Zurich	DZ Bank Sustainability Technologies Conference
31 Jul 2012*		Q3 FY12 Results
29-30 Aug 2012	Frankfurt	Commerzbank Sector Conference Week
13 Sep 2012	London	JPMorgan Pan Euro Tech Conference
26 Sep 2012	Munich	Baader Investment Conference
13 Nov 2012*		Q4 FY12 Results
14-16 Nov 2012	Barcelona	Morgan Stanley TMT Conference
27-28 Nov 2012	Scottsdale	Credit Suisse Technology Conference

Copyright © Infineon Technologies 2010. All rights reserved. 2011

Institutional Investor Relations Contact

Ulrich Pelzer

Corporate Vice President, Corporate 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

Aleksandar Josic Manager, Investor Relations

+49 89 234-83045 aleksandar.josic@infineon.com

Holger Schmidt Manager, Investor Relations

+49 89 234-22332 holger.schmidt@infineon.com

Disclaimer

This presentation was prepared as of 1 February 2012 and is current only as of that date.

This presentation includes forward-looking statements and assumptions about the future of Infineon's business and the industry in which we operate. These include statements and assumptions relating to general economic conditions, future developments in the world semiconductor market, our ability to manage our costs and to achieve our growth targets, the resolution of Qimonda's insolvency proceedings and the liabilities we may face as a result of Qimonda's insolvency, the benefits of research and development alliances and activities, our planned levels of future investment, the introduction of new technology at our facilities, our continuing ability to offer commercially viable products, and our expected or projected future results.

These forward-looking statements are subject to a number of uncertainties, such as broader economic developments, including the market environment; trends in demand and prices for semiconductors generally and for our products in particular, as well as for the end-products, such as automobiles, drives, renewable energies and consumer electronics, that incorporate our products; the success of our development efforts, both alone and with partners; the success of our efforts to introduce new production processes at our facilities; the actions of competitors; the continued availability of adequate funds; any mergers, acquisitions or dispositions we may undertake; the outcome of antitrust investigations and litigation matters; and the resolution of Qimonda's insolvency proceedings; as well as the other factors mentioned in this presentation and those disclosed at other occasions.

As a result, Infineon's actual results could differ materially from those contained in or suggested by these forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements. Infineon does not undertake any obligation to publicly update or revise any forward-looking statements in light of developments which differ from those anticipated.