Deutsche Bank European TMT Conference 3 September 2015

Dominik Asam, CFO

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.

The opening balance sheet values, and with them the comparative information for the previous period have been adjusted as a result of the continuing analysis and valuation of the assets and liabilities acquired as part of the preliminary purchase price allocation for International Rectifier.

Leadership in system understanding will foster future growth and profitability

Competitive advantages

System leader in Automotive

#1 and technology leader in Power

Leader in Security Solutions

Average-cycle financial targets

Revenue Growth:

Segment Result Margin:

Investment-to-Sales:

~13%

Automotive and power are the two major pillars of Infineon's businesses

Infineon is growing faster than the market in automotive and is clear leader in power

Automotive semiconductors incl. semiconductor sensors.

Source: Strategy Analytics, April 2015

Discrete power semiconductors and power modules.

Source: IHS Inc., August 2015

Microcontroller-based smart card ICs.

Source: IHS Inc., July 2015

Integration of International Rectifier on track – next steps completed

Major achievements in Q3 FY15

› Organizational integration progressing fast; in many areas completed
› Executing the discontinuation of manufacturing operation at Techview in Singapore; completed by end of CY15
› Full commitment: International Rectifier's margin contribution will at least be in line with Infineon's target of 15% Segment Result margin at the latest by FY17

Q3 FY15 adjusted EPS: €0.18

Infineon benefits from auto and industrial, the by far fastest growing semiconductor sectors

Source: IHS, Worldwide Semiconductor Shipment Forecast, AMFT Q2 2015, July 2015

* In calendar year 2014

** Source: IHS, "Smart Cards Semiconductors", July 2015

Infineon is system leader in automotive, making cars clean, safe and smart

2 with strongest market share gains in 2014:

› #1 in power semiconductors
› #2 in sensors
› #3 in microcontrollers (#1 in powertrain*)

* Source: own estimate

Most balanced portfolio with sensors, microcontrollers and power for system approach

Leader in electric drivetrain and CO² reduction - making cars clean

Leader in ADAS

- making autonomous driving safe and reliable

Leading product portfolio of sensors and security ICs for individual convenience and connectivity - making cars smart

Focus on sustainable high-bill-of-material areas powertrain, safety/ADAS/autonomous cars, body Infineon is ideally positioned to benefit from megatrends and gain further market share in Automotive

Infineon holds leading positions in systemcrucial automotive product categories

2014 automotive semiconductor market by product category (\$27.5bn)

› "Power" and "Sensors" are among the fastest growing product categories with 11% growth y-y each.

› Infineon increased market share in "Power" by 3.5%-points resulting in market share of 24.8%.
› Infineon's share in "Sensors" driven by pressure and magnetic sensors.

Critical elements for (semi-) autonomous driving

Receiving Bosch "Global Supplier Award" for Infineon's 77 GHz radar chip family

Award-winning RASIC chips

› On 16 July 2015, Infineon received the "Bosch Global Supplier Award" for innovation in recognition of its radar product family.
› Innovative eWLB package reduces system cost and makes radar-based safety features affordable for compact vehicles
› Infineon is #1 in SiGe-based radar ICs for ADAS applications*
› 10m radar chips shipped in past six years; next 10m chips expected to be shipped within next 12 months
› From 2016 onwards, radar or camera are required for pedestrian recognition and autonomous emergency braking to achieve maximum Euro NCAP 5-star safety rating

* Source: IHS Inc., "ADAS Sensor Market Shares – H2 2014".

Infineon AURIX™ microcontrollers make autonomous driving reliable

During the CES 2015, Audi demonstrated their autonomous driving capabilities. Audi's piloted driving concept car "Jack", an Audi A7 Sportback, completed a 550 mile piloted drive from Silicon Valley to Las Vegas.

The central driver assistance ECU ("zFAS") is the core of future systems for piloted driving for Audi.

Within zFAS Infineon's AURIX™ is the interface to the car architecture, hosts different functions and acts as safety monitor. Courtesy: AUDI

* zFAS = zentrales Fahrerassistenzsystem = German term for central driver assistance ECU.

New 3D Hall sensor family – expanding Infineon's sensor target markets

Features	Applications	Package
extremely low power consumption › highly accurate › industry's smallest 3D Hall sensor › › for three-dimensional, linear and rotation movements › targeting automotive, consumer and industrial applications	control elements › › gear sticks › steering columns multi-function › knobs joy sticks › smart meters ›

Wide adoption of premium features, ADAS and CO² reduction drive ATV's growth

	Drivers for semiconductor content per car
Vehicle production	CO reduction 2	Advanced safety	Comfort, Premium
	Courtesy: BMW Group	Courtesy: AUDI
~ 4% growth per › annum › highest growth in emerging markets Western Europe › recovering; the US on high level	› driven by legislation improvements of › ICE (e.g. electric steering, electric pumps and motors) › adoption of EV/HEV	› current: crash avoidance next: › assisted driving › future: autonomous driving	› premium cars are early adopters of high-end comfort and safety features trickling down to › mid-range

Advanced Safety: safety, ADAS, autonomous driving ICE: Internal Combustion Engine

Infineon is #1 and technology leader in power semiconductors

1 in the market

Broadest product and technology portfolio

Addressing broadest range of applications

300mm thin-wafer manufacturing for power semiconductors

System leader with digitalization of the control loop and functional integration

Leader in next-generation power semiconductor materials GaN and SiC

Infineon is ideally positioned to gain further market share and earn superior margins in power semiconductors

As system leader in power Infineon offers solutions to a wide spectrum of applications

Infineon holds top positions in both MOSFET and IGBT markets

Source: IHS Inc., "Power Semiconductor Discretes & Modules Report – 2015", August 2015

Infineon's path to expand its market share for MHA and light industrial applications

Strategic steps

› 1st step: Increase of shareholding in the Korean joint venture LS Power Semitech (LSPS) from 46% to 66%, thereby benefitting from the close cooperation with Samsung and LG who go for 100% VSD motor control.
› 2nd step: Acquisition of International Rectifier. Major product families for MHA: IRAM and iMOTION.
› 3rd step: Acquisition of the remaining shares outstanding of LSPS, thereby increasing Infineon's footprint in the growing market segment of IPMs.
› Profitable growth achieved by very competitive manufacturing cost position.

CIPOS™-Mini

Major market developments

› Demand for higher efficiency increases VSD penetration in home appliances.
› In the US, a decent share of MHA are overaged; no refurbishment since economic crisis.
› In the US, new energy efficiency legislation for refrigerators and freezers drives VSD penetration for compressors and fans.

MHA = Major Home Appliances.

VSD = Variable Speed Drive.

IPM = Intelligent Power Module; modules that combine IGBTs with control and protection circuitry in a single housing.

Infineon and Google to jointly develop advanced radar chip for gesture recognition

Infineon is a recognized leader in radar-based sensor IC with both components and system-level solutions

› Infineon and Google's Advanced Technology and Projects (ATAP) group jointly develop radar-based sensing solution (https://www.youtube.com/watch?v=0QNiZfSsPc0)
› Potential applications:
wearables
Internet of Things
automotive
› On 30 May 2015, first implementations demonstrated at Google I/O Developers Conference in San Francisco.

Google "Project Soli"

Infineon's advanced 60 GHz radar sensor IC

Efficiency and digitalization are main market drivers for power applications

DPM = Digital Power Management.

MHA = Major Home Appliances.

VSD = Variable Speed Drive.

CCS is well positioned to grow faster than the market as leader in security solutions

Infineon's long-term growth is based on sustainable growth drivers

~8% p.a. through-cycle growth

Strong y-y growth due to organic growth and integration of International Rectifier

* Including revenues of €199m from International Rectifier from 13 January to 31 March 2015.

ATV, IPC, PMM boosted by International Rectifier business; CCS growth solely organic

* Including International Rectifier from 13 January to 31 March 2015.

Guidance for Q4 FY15 and total FY15

	Outlook Q4 FY15 (compared to Q3 FY15)	Outlook FY15 (compared to FY14)
Revenue	Increase by 1% +/- 2%-points	Increase of ~34% (prev.: Increase of 36% +/- 2%-points)
Segment Result Margin	At the mid-point of the revenue guidance: 16%	15% (prev.: 15% at the mid-point of the revenue guidance of 36% +/- 2%-points)
Investments in FY15		€800m* About
D&A in FY15		€750m** About

* Including International Rectifier and €60m to €70m for Kulim 2 and €21m for Qimonda IP.
** Including D&A on tangible and intangible assets from purchase price allocation of International Rectifier.

Since Q2 FY15 R&D and SG&A are containing acquisition-related expenses

* Including International Rectifier from 13 January to 31 March 2015.

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

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

Working capital leveling off after acquisition of International Rectifier and Qimonda settlement

* Including International Rectifier from 13 January to 31 March 2015. ** For definition please see page 35.

FY15 investment ratio (including International Rectifier) is decreasing towards 13%

* Including International Rectifier from 13 January to 31 March 2015.

** For definition please see page 35.

*** Including International Rectifier, €60m to €70m for Kulim 2, and €21m for Qimonda IP.

Dividend of €0.18 has increased capital returns by €202m in February 2015

Net cash already returned to positive level in second quarter after acquisition

› In Q3, gross cash and net cash increased due to:
positive Free Cash Flow of €220m and
reduction in debt by €39m, thereof repayment of €13m.

NOPAT increased in Q3 FY15 – target: 'RoCE above WACC' over the cycle

* Including International Rectifier from 13 January to 31 March 2015. ** For definition please see page 35.

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

Investments =

Notes

'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

DOI (days of inventory; quarter-to-date) =

('Net Inventories' / 'Cost of goods sold') * 90

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

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'

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.

– 'Liabilities classified as held for sale')

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

Tight customer relationships are based on system know-how and app understanding

Infineon is a long-standing member of Europe's leading sustainability indices

Infineon's most recent achievements

› January 2015: Infineon is listed in the Sustainability Yearbook for the fifth consecutive year and, according to RobecoSAM, among the top 15% most sustainable companies worldwide.
› 11 September 2014: Infineon was listed in the Dow Jones Sustainability Index for the fifth consecutive year.

› September 2014: Infineon was listed in the STOXX® Global ESG Leaders Indices, which serves as an indicator of the quality of Infineon's performance in the governance, social and environmental areas (ESG).

› Infineon was added to the FTSE4Good Index Series in 2001 and has been confirmed as a member since then (most recent review: June 2015).

Financial calendar

Date	Location	Event
22 - 23 Sep 2015	Munich	Baader Investment Conference
23 Sep 2015	Munich	Berenberg Bank and Goldman Sachs German Corporate Conference
28 Sep 2015	London	ATV Presentation by Jochen Hanebeck, Division President Automotive
11 – 12 Nov 2015	Barcelona	Morgan Stanley TMT Conference
26 Nov 2015*		Q4 FY15 and FY 2015 Results
01 – 02 Dec 2015	Phoenix, AZ	Credit Suisse TMT Conference
02 Feb 2016*		Q1 FY16 Results
18 Feb 2016	Munich	Annual General Meeting

* preliminary

Institutional Investor Relations contacts

Dr. Jürgen Rebel

Corporate Vice President +49 89 234-21626

Investor Relations [email protected]

Joachim Binder

Senior Director +49 89 234-25649 Investor Relations [email protected]

Holger Schmidt

Manager +49 89 234-22332 Investor Relations [email protected]

AI Terminal

Infineon Technologies AG

222_ip_2015-09-03_b87bbf6d-f067-417e-bdc2-fb7d7fa4bb94.pdf

Deutsche Bank European TMT Conference 3 September 2015

Table of Contents

Disclaimer:

System leader in Automotive

#1 and technology leader in Power

Leader in Security Solutions

Revenue Growth:

Segment Result Margin:

Automotive and power are the two major pillars of Infineon's businesses

Infineon is growing faster than the market in automotive and is clear leader in power

Integration of International Rectifier on track – next steps completed

Major achievements in Q3 FY15

Q3 FY15 adjusted EPS: €0.18

Table of Contents

Infineon is system leader in automotive, making cars clean, safe and smart

2 with strongest market share gains in 2014:

Infineon holds leading positions in systemcrucial automotive product categories

Critical elements for (semi-) autonomous driving

Receiving Bosch "Global Supplier Award" for Infineon's 77 GHz radar chip family

Award-winning RASIC chips

Infineon AURIX™ microcontrollers make autonomous driving reliable

New 3D Hall sensor family – expanding Infineon's sensor target markets

Wide adoption of premium features, ADAS and CO2 reduction drive ATV's growth

Infineon is #1 and technology leader in power semiconductors

1 in the market

Infineon holds top positions in both MOSFET and IGBT markets

Infineon's path to expand its market share for MHA and light industrial applications

Strategic steps

Major market developments

Infineon and Google to jointly develop advanced radar chip for gesture recognition

Google "Project Soli"

Efficiency and digitalization are main market drivers for power applications

CCS is well positioned to grow faster than the market as leader in security solutions

Infineon's long-term growth is based on sustainable growth drivers

~8% p.a. through-cycle growth

Table of Contents

Strong y-y growth due to organic growth and integration of International Rectifier

ATV, IPC, PMM boosted by International Rectifier business; CCS growth solely organic

Guidance for Q4 FY15 and total FY15

Since Q2 FY15 R&D and SG&A are containing acquisition-related expenses

FY15 investment ratio (including International Rectifier) is decreasing towards 13%

Dividend of €0.18 has increased capital returns by €202m in February 2015

Net cash already returned to positive level in second quarter after acquisition

NOPAT increased in Q3 FY15 – target: 'RoCE above WACC' over the cycle

Investments =

Capital Employed =

RoCE =

NOPAT / Capital Employed =

Working Capital =

Infineon is a long-standing member of Europe's leading sustainability indices

Infineon's most recent achievements

Financial calendar

Institutional Investor Relations contacts

Dr. Jürgen Rebel

Joachim Binder

Holger Schmidt

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Wide adoption of premium features, ADAS and CO² reduction drive ATV's growth