Infineon Technologies AG

Earnings Release • Jul 30, 2014

Third Quarter FY 2014 Quarterly Update

Infineon Technologies AG Investor Relations

Table of Contents

Infineon at a Glance

Growth Drivers

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.

Average Cycle Financial Targets

Revenue Split by Division

^2014-07-30 Copyright © Infineon Technologies AG 2014. All rights reserved. Page 4

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

Infineon Holds Top Positions in All Major Product Categories

Automotive semiconductors incl. semiconductor sensors.

Source: Strategy Analytics, April 2014.

Discrete power semiconductors and power modules.

Source: IHS, December 2013.

Microcontroller-based smart card ICs. Source: IHS, July 2014.

Table of Contents

Infineon at a Glance

Growth Drivers

Results and Outlook

Growth in Car Production and Content-per-Car Continues Unabated

Source: IHS, "Annual Light Vehicle Production and Sales 2007 – 2019", July 2014 update.

Source: Strategy Analytics, "Automotive Semiconductor Demand Forecast 2012 – 2021", incl. semiconductor sensors, update July 2014.

In 2013, Infineon Gained Market Share in All Addressed Product Categories

2013 automotive semiconductor market by product category (\$25.1bn)

• "Power" and "Sensors" were the fastest growing product categories with 8% and 7% growth y-y, respectively.
• Infineon remained market leader in "Power" with 21.3% market share.
• Strong product portfolio in pressure and Hall sensors led to significant market share gain in "Sensors" of 1.0%-point.

Source: Strategy Analytics, April 2014.

* "others" include: opto, small-signal discretes, logic ICs, nonpower analog, memory, and other.

Infinon's Basic LED Driver Family Powers Rear LED Lighting of Audi S1

• Rear lighting solution developed as part of our long-running partnership with Audi.
• Infineon's Basic LED drivers already shipping in volume and are expected to ramp in the coming quarters as OEMs increasingly use LEDs for exterior lighting.

Advantages of Infineon's Basic LED driver

• Reduces component count and system complexity.
• Enables advanced diagnostic functionality.
• Reduces power consumption and thus CO² .

Wide Adoption of Premium Features, ADAS and CO² Reduction Drive ATV's Growth

ATV: ~8%* p.a.

* Targeted growth rate of ~8% reflects ATV's expectation that its strong competitive positioning will lead to market share gains.

Sources: IHS, Strategy Analytics, Infineon. ADAS: Advanced Driver Assistance Systems

Drives, Home Appliances and Others Show Strongest Growth Rates

IPC: ~10% p.a.

Infineon is Samsung's Partner of Choice for RF Components in its Flagship Smartphone

Key advantages of Infineon's RF components

• High-density chip design integrates both low-noise amplifiers and associated discretes.
• LTE LNAs are specially designed to fully exploit the speed of the LTE communication standard.
• New product generations with higher integration and smaller footprint are introduced in next to no time.

PMM Aims to Outgrow Its Core Markets

PMM: ~10%* p.a.

* Targeted growth rate of ~10% reflects PMM's expectation that its strong competitive positioning will lead to market share gains.

Sources: IHS, ABI Research, Infineon.

Strong Growth in Payment Business and also in Multiple Implementations of NFC

Strong momentum for Infineon's payment business

• Successful introduction and ramp of SLE 77-based products in 90nm technology.
• Payment business grew by ~40% yearon-year in Q3 FY14.
• Payment business remains well positioned for further growth driven by
• ongoing and accelerated roll out of China UnionPay chip cards, mainly dual-interface cards;
• conversion of US magnetic stripebased cards to EMV* cards, underway in H2 2014 / early 2015;
• general trend towards dual-interface cards (e.g. "girogo" in Germany).
• * EMV = Europay MasterCard Visa, a global standard for interoperability of chip-based cards and chip card capable point-of-sale terminals and ATMs.

Infineon's main NFC offerings on the rise

embedded SE in SIM card

• Design wins at various smartphone manufacturers for embedded Secure Element using 32-bit security controller.
• Strong presence in NFC SIM cards, especially in planned China's LTE rollout combined with mobile payment/transport.

Growth in CCS Driven by All Application Segments

High-end Mobile Communication	Payment	Government Identification	Embedded Security
Expected growth [pieces]
~30%	~15%	~15%	~20%
CCS:	6-9% p.a.

Sources: IHS, ABI Research, Infineon.

Expected Growth Broadly In Line With Historical Averages

Infineon: ~8% p.a.

Sources: IHS, Strategy Analytics, ABI Research, Infineon.

Table of Contents

Infineon at a Glance

Growth Drivers

Results and Outlook

Q3 FY14 Is Fifth Consecutive Quarter of Year-On-Year Growth

Strong Growth in ATV Margins in IPC Fully Recovered

Guidance for Q4 FY14 and FY 2014

	Outlook Q4 FY14 (compared to Q3 FY14)		Outlook FY 2014 (compared to FY 2013)
Revenue	Increase between 3% and 7%.		Slightly above 11%. (previously: "at least at high end of 7-11% range")
Segment Result Margin	Between 15% and 17%.		Slightly above 14%. (previously: "at least at high end of 11-14% range")
Investments in FY 2014		About €650m.
D&A in FY 2014		€500m or slightly above.

Investment-to-Sales Ratio Will Drop From ~15% in the Past to ~13% in the Future

Investments and Investment-to-Sales Ratio

Dividend Payments Will Rise by 4 to 6 €-Cents as Early as FY14

Opex-to-Sales-Ratio Well Within Target Range

1) Target range for SG&A: "Low teens percentage of sales".

2) Target range for R&D: "Low to mid teens percentage of sales".

DOI, DSO and DPO in Line With Our Targets

Trade receivables Trade payables

* For definition please see page 31.

Investments Peaked in FY12, D&A Still Increasing

^* For definition please see page 31.

Gross Cash and Net Cash Have Increased

* The remaining outstanding convertible bonds were converted by the end of January 2014.

Increase in Gross Cash and Net Cash due to higher cash from operating activities while investments were slightly lower.

Total Gross Capital Returns of EUR 851m Between FY 2011 and FY 2014

Target: 'RoCE Above WACC' Over the Cycle

* For definition please see page 31.

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

DPO (days payables outstanding; quarter-to-date) =

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

Please note:

All positions in ' ' refer to the respective accounting position and therefore should be applied with the positive or negative sign used in the relevant accounting table.

2014-07-30 Copyright © Infineon Technologies AG 2014. All rights reserved. Page 31

('Trade payables' / ['Cost of goods sold' + 'Purchase of property, plant and equipment']) * 90

Infineon is a Long-standing Member of Europe's Leading Sustainability Indices

Infineon's most recent achievements

• January 2014: Infineon is listed in the Sustainability Yearbook for the fourth consecutive year and according to RobecoSAM, listed among the top 15% most sustainable companies worldwide.
• September 2013: Infineon was listed in the Dow Jones Sustainability Index for the fourth consecutive year.

October 2013: oekom research has classified Infineon as "Prime", which serves as an indicator of the quality of Infineon's performance in the

social and environmental areas.

Infineon was added to the FTSE4Good Index Series in 2001 and has been confirmed as a member since then.

Financial Calendar

Date	Location	Event
17 Sep 2014*		Conference Call by Jochen Hanebeck, Division President Automotive
23 Sep 2014	Munich	Baader Investment Conference
24 Sep 2014	Munich	Berenberg Bank and Goldman Sachs German Corporate Conference
19 – 20 Nov 2014	Barcelona	Morgan Stanley TMT Conference
27 Nov 2014*		Q4 FY14 and FY 2014 Results
02 – 03 Dec 2014	Scottsdale, AZ	Credit Suisse TMT Conference
29 Jan 2015*		Q1 FY15 Results
12 Feb 2015	Munich	Annual General Meeting

* preliminary

Institutional Investor Relations Contact

Ulrich Pelzer

Corporate Vice President +49 89 234-26153 Investor Relations

Finance, Treasury & ulrich.pelzer@infineon.com

Joachim Binder

Senior Director +49 89 234-25649 Investor Relations joachim.binder@infineon.com

Holger Schmidt

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