Infineon Technologies AG

Earnings Release • Jan 30, 2014

First 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.

Revenue Split by Division

^2014-01-30 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 2013.

Discrete power semiconductors and power modules.

Source: IHS, December 2013.

Microcontroller-based smart card ICs. Source: IHS, September 2013.

Table of Contents

Infineon at a Glance

Growth Drivers

Results and Outlook

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

EV/HEV Powertrain Contains \$300 More Semi Content-per-Car vs Conventional Car

Source: Strategy Analytics, "Hybrid & Electric Vehicle Systems Demand Forecast 2007 to 2020", November 2013.

Source: Strategy Analytics, "Automotive Semiconductor Demand Forecast 2011 – 2020", January 2014.

IGBTs: Double-Digit Growth For Modules; Discretes to Resume Growth After 2013 Dip

Source: IHS, "The World Market for Power Semiconductor Discretes and Modules", December 2013.

Higher Functionality in Mobile Devices Requires Additional Infineon Components

* Does not include headsets, which typically require an additional microphone.

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

Profitability Better Than Expected in Q1 FY14

ATV, IPC and PMM Recorded High Year-on-Year Growth

Guidance for Q2 FY14 and FY 2014

	Outlook Q2 FY14 (compared to Q1 FY14)		Outlook FY 2014 (compared to FY 2013)
Revenue	Mid single-digit percentage increase.		Increase between 7% and 11%.
Segment Result Margin	Between 10% and 13%.		Between 11% and 14%.
Investments in FY 2014		About €650m.
D&A in FY 2014		€500m or slightly above.

Significant Year-on-Year Improvement in Financial Performance

	[EUR m]	Q1 FY13	Q4 FY13	Q1 FY14
	Revenue	851	1,053	984
	Segment Result	44	148	116
	SR Margin 5.2%		14.1%	11.8%
[EUR m] 1053	Net Income*	19	142	87
984	Investment	88	155	129
148 116	FCF from cont. operations	-128	156	30
Q4 FY13 Q1 FY14	Gross Cash	2,081	2,286	2,279
Revenue Segment Result	Net Cash	1,768	1,983	2,048

* Net Income includes "income/loss from discontinued operations, net of income taxes" in Q1 FY13 EUR -7m, in Q4 FY13 EUR 3m and in Q1 FY14 EUR 2m.

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".

Inventories Up due to High Productivity, DSO and DPO in Line With Our Targets

Trade receivables Trade payables

* For definition please see page 24.

Future Investments Expected to Be About 15% of Sales

Gross Cash Stable; Net Cash Increased Due to Conversion of Convertible

* Consists of convertible bond (nominal value EUR 39m; book value EUR 38m).

Increase in gross cash offset by repurchase of convertible bonds for EUR 35m. Net cash increased due to conversion of convertible bonds with nominal value of EUR 64m.

Convertible bond: early redemption on 7 February 2014.

Total Gross Capital Returns of EUR 722m Between FY 2011 and Q1 FY14

Target: 'RoCE above WACC' over the cycle

* For definition please see page 24.

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 receivables' / 'revenue') * 90

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

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

Infineon's most recent achievements

New!

• 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.
• March 2013: Infineon was confirmed as member of this index for the 12th consecutive year.

Financial Calendar

Date	Location	Event
13 Feb 2014	Munich	Annual General Meeting
29 Apr 2014*		Q2 FY14 Results
11 Jun 2014	Berlin	Dt. Bank German, Swiss & Austrian Conference
17 Jun 2014	London	JPMorgan Technology CEO Conference
30 Jul 2014*		Q3 FY13 Results
09 Sep 2014	Frankfurt	Commerzbank Sector Week
18 Nov 2014*		Q4 FY14 and FY 2014 Results
19 – 20 Nov 2014	Barcelona	Morgan Stanley TMT Conference
02 – 03 Dec 2014	Scottsdale, AZ	Credit Suisse TMT Conference

* provisional

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

Bernard Wang

Copyright © Infineon Technologies 2012. All rights reserved. Page 27 Senior Manager +49 89 234-22669 Investor Relations bernard.wang@infineon.com