Infineon Technologies AG

Earnings Release • Jun 11, 2014

Deutsche Bank "German, Suisse & Austrian Conference" 11 June 2014, Berlin

Dr. Reinhard Ploss CEO

Infineon at a Glance

Growth Drivers

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

^2014-06-11 Copyright © Infineon Technologies AG 2014. All rights reserved. Page 3

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, September 2013.

Infineon at a Glance

Growth Drivers

Outlook

Infineon at a Glance

Growth Drivers

Automotive

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

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

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

ICEs Still Bread-and-Butter Business; New Opportunities with HEV/EV

ATV: ~7% p.a.

Sources: IHS, Strategy Analytics, Infineon. ICE: Internal Combustion Engine.

Infineon at a Glance

Growth Drivers

Industrial Power Control

Drives (incl. Pumps, Fans, Compressors) by Far Biggest Application Segment

2012 IGBT market by application (\$4.06bn)

Source: IHS, "Power Semiconductor Discretes and Modules – World – 2013", December 2013.

Drives, Home Appliances and Others Show Strongest Growth Rates

IPC: ~10% p.a.

Infineon at a Glance

Growth Drivers

Power Management & Multimarket

PMM Aims to Outgrow Its Core Markets

Infineon at a Glance

Growth Drivers

Chip Card & Security

Infineon is Market Leader for Secure Hardware in Government ID

• More than 120 reference projects across all Government ID applications¹ in ~60 countries representing 2/3 of the world's population.
• Infineon is the only IC company shipping to the ePassport projects of the world's five biggest countries in 2012.
• Infineon is shipping to more than 70% of all eID projects in Europe.

eID projects in Europe

Austria	Belgium
Bulgaria	Croatia
Cyprus	Czech Republic
Denmark	Estonia
Finland	France
Germany	Ireland
Italy	Kosovo
Luxembourg	The Netherlands
Norway	Poland
Portugal	Serbia
Slovakia	Slovenia
Spain	Sweden
Switzerland	Turkey
UK

¹ ePassport, National eID, eHealth card, eResidence Permit, eDriving Licence, road toll.

Infineon Is Well Positioned for the EMV (Europay MasterCard Visa) Roll-out

Source: IHS, "Payment & Banking Cards", 2014.

* VISA official websites (available on 2014-06-03): https://technologypartner.visa.com/Download.aspx?id=247 https://technologypartner.visa.com/Download.aspx?id=244

• China and the US are currently the two largest market opportunities in
• From 2014 2019, shipments of 3.6bn cards are projected for China and 1.4bn cards for the US, respect.
• Infineon's refined go-to-market approach is gaining traction in China.
• Excellent relations to payment networks as well as a broad and modern product range have lead to design-ins at nearly all major card integrators
• From 2013 onwards, the vast majority of the new platforms that global card manufactures enlisted for Visa and MasterCard certification are based on Infineon SLE 7x products*.

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.

Infineon at a Glance

Growth Drivers

Outlook

Guidance for Q3 FY14 and FY 2014

	Outlook Q3 FY14 (compared to Q2 FY14)		Outlook FY 2014 (compared to FY 2013)
Revenue	Increase between 4% and 8%.		At least 11%. (previously: "Between 7% and 11%")
Segment Result Margin	Between 14% and 16%.		At least 14%. (previously: "Between 11% and 14%")
Investments in FY 2014		About €650m.
D&A in FY 2014		€500m or slightly above.