Infineon Technologies AG

Earnings Release • Jun 2, 2015

DZ Bank, Deutsche Börse 8th Sustainable Technologies Conference Zurich, 02 June 2015

Dr. Jürgen Rebel Corporate Vice President 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.

Leadership in System Understanding Will Foster Future Growth and Profitability

Automotive and Power are the Two Major Pillars of Infineon's Businesses

*Includes revenues from International Rectifier from 13 January to 31 March 2015.

Infineon is Growing faster than the Market in Automotive and the Clear Leader in Power

Automotive semiconductors incl. semiconductor sensors.

Source: Strategy Analytics, April 2015

Discrete power semiconductors and	Microcontroller-based smart
power modules.	card ICs.
Source: IHS Inc., September 2014	Source: IHS Inc., July 2014

Integration of International Rectifier on Track – First Synergies Realized

Major achievements since closing

• Closing on January 13th, 2015
• Merging of organizations progresses as planned
• Realization of synergies progresses as planned
• First "adding of scope" and "adding of scale" opportunities realizing
• Sales and distribution fully integrated ahead of schedule
• Accretive to adjusted EPS from day of closing

Example: expanding our IPM* portfolio for further low-power applications.

Q2 FY15 adjusted EPS: €0.13

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

Table of Contents

Infineon at a Glance

Growth Drivers

Results and Outlook

Infineon Benefits From Auto and Industrial, the by Far Fastest Growing Semi Sectors

Automotive: IFX Holds Leading Positions in System-Crucial Product Categories as global #2

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.

Source: Strategy Analytics, April 2015.

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

Infineon Covers Critical Elements for (Semi-) Autonomous Driving

Infineon AURIX™ µControllers Make Autonomous Driving Dependable

At 2015 CES in Las Vegas, Audi showcased its self-driving 'piloted drive' efforts in an A7 concept car called "Jack". "Jack" drove 550 miles autonomously from Stanford to Las Vegas.

The central driving system "zFAS* " ("Sensor fusion ECU") has the size of a notebook.

Infineon's AURIX™ µController makes this sensor fusion ECU 100% reliable.

* zFAS = zentrales Fahrerassistenzsystem = German term for central driver assistance system ("sensor fusion ECU").

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

• ~4% growth per annum
• highest growth in China

• Europe and the US recovering

• driven by legislation

• realized in electric motors and pumps

• adoption of EV/HEV

• 1st step: assisted driving

• 2nd step: semiautonomous driving
• 3rd step: fully autonomous driving
• premium cars are early adopters of high-end comfort and safety features
• trickling down to mid-range

* ADAS: Advanced Driver Assistance Systems

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

World's First Automotive Power MOSFET From 300mm Thin-Wafer Manufactured

Features	Applications	Package
Infineon is the world's first  company to manufacture automotive-grade power MOSFETs on 300mm thin-wafers	 power window  valve control door control  sun roof 
 Thereby, first step to load the 300mm fabs with automotive products done	 pumps
 Initial product: 40V OptiMOS™5

• Thin-wafer technology is key basis for performance improvements:
• brings energy losses to the minimum
• enables very compact designs

As System Leader in Power Infineon Offers Solutions to a Wide Spectrum of Applications

System competence for highest reliability and highest efficiency

Controllers	Drivers	MOSFET/IGBT	Modules	Stacks
 Primarion, CHiL  .dp  Power ICs  µC: XMC™ family	 MOSFET driver  IGBT driver  galvanic isolation	low-voltage MOSFETs  high-voltage MOSFETs  discrete IGBTs 	low-power  mid-power  high-power 	IGBT stacks 

Infineon Holds Top Positions in Both MOSFET and IGBT Markets

Source: IHS Inc., "Power Semiconductor Discretes & Modules Report – 2014", September 2014

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: Fully consolidation of LSPS, thereby increasing Infineon's footprint in the growing market segment of IPMs*** for consumer appliances and light industrial applications.
• 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.

Expanding Infineon's MEMS Competence: New Digital Barometric Air Pressure Sensor

Features of Digital Pressure Sensor (DPS310)

• MEMS-based pressure sensor and temperature sensor in one
• Applications:
• indoor navigation (shopping malls, parking garages)
• health, sports, activity tracking
• weather stations
• Nokia Here and Google are driving indoor maps
• High resolution measurements (+/-5cm): even individual steps can be counted
• First design-wins secured; ramp expected in H2 CY15

DPS310

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 Supplies Embed. Secure Element Chips to Samsung's Galaxy S6 and S6 edge

Infineon eSE chip for Samsung Galaxy S6 and S6 edge

• Infineon supplies the embedded Secure Element (eSE) chip for Samsung's new premium smartphones Galaxy S6 and S6 edge.
• Samsung's flagship Galaxy S6 and S6 edge mobile devices use the Infineon SLE 97 eSE.
• Infineon's SLE 97 is a SOLID FLASH™ based eSE chip which can safeguard the functionalities of the mobile device as well as transactions where users' sensitive data such as payment credentials are concerned.

Courtesy: Samsung

Infineon Supplies TPM Security Controller to Microsoft Surface Pro 3 Tablet

Infineon TPM 2.0 for Microsoft Surface Pro 3

• Infineon's OPTIGA™ TPM (Trusted Platform Module) security controller is used in Microsoft Surface Pro 3.
• Microsoft Surface Pro 3, widely recognized for its excellent performance both as a tablet and a laptop replacement, utilizes the higher security and improved system management features of the latest TPM 2.0 standard.
• The Infineon OPTIGA™ TPM SLB 9665 series is used in Microsoft Surface Pro 3, supporting a wide range of security needs ranging from strong authentication to platform integrity checks.

Infineon's Long-term Growth is Based on Sustainable Growth Drivers

~8% p.a. through-cycle growth

Table of Contents

Infineon at a Glance

Growth Drivers

Results and Outlook

Q2 Revenue Driven by Integration of IRF, FX Effects, and Strong Growth in CCS

ATV, IPC and PMM Boosted by Int. Rectifier Businesses; CCS Growth Solely Organic

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

Guidance for Q3 FY15 and Total FY15

	Outlook Q3 FY15 (compared to Q2 FY15)		Outlook FY15 (compared to FY14)
Revenue	Increase between 7% and 11%		Increase of 36% +/- 2%-points (prev.: "Increase of 12% +/- 2%-points")
Segment Result Margin	At the mid-point of the revenue guidance: 15%		At the mid-point of the revenue guidance: 15% (previously: "Between 14% and 15%")
Investments in FY15		€800m About €750m*") (previously: "About
D&A in FY15		€750m*** About (previously: "About €600m")

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

SG&A Ratio Significantly Increased Due to 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".

Higher Business Volume Leads to an Increase in Working Capital

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

FY15 Investments Ratio Including Int. 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 Position Turned Negative After Acquisition of International Rectifier

• In Q2, gross cash and net cash affected by:
• payment of purchase price for International Rectifier,
• dividend payment to the amount of €202m,
• positive operating cash flow of €135m, and
• increase in debt by €1.642m.

Target: 'RoCE Above WACC' Over the Cycle

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 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

2015-06-02 Copyright © Infineon Technologies AG 2015. All rights reserved. Page 35

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

• 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.

Infineon's Revenue Development Outperformed Total Semiconductor Market

Revenue Infineon* [lhs]

Semiconductor World Market (adjusted for the Infineon fiscal year ending Sep 30)

* Based on Infineon's portfolio (excl. Other Operating Segments and Corporate & Eliminations) per end of 2014 fiscal year.

** Based on market development assumptions FY99's revenue figures for some smaller product categories have been derived from the FY00's revenue figures.

*** Scale indexed to the Infineon FY99 revenue.

Source: Infineon; WSTS (World Semiconductor Trade Statistics), November 2014.

Financial Calendar

Date	Location	Event
03 Jun 2015	Copenhagen	Danske Bank German Corporate Day
17 Jun 2015	Berlin	Dt. Bank German, Swiss & Austrian Conference
30 Jul 2015*		Q3 FY15 Results
16 Sep 2015*		ATV Analyst Call by Jochen Hanebeck, Division President Automotive
22 Sep 2015	Munich	Baader Investment Conference
23 Sep 2015	Munich	Berenberg Bank and Goldman Sachs German Corporate Conference
11 – 13 Nov 2015	Barcelona	Morgan Stanley TMT Conference
26 Nov 2015*		Q4 FY15 and FY 2015 Results

* preliminary

Institutional Investor Relations Contacts

Dr. Jürgen Rebel

Corporate Vice President +49 89 234-21626

Investor Relations juergen.rebel@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