Infineon Technologies AG

Earnings Release • Jan 29, 2015

First Quarter FY 2015 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 (excluding International Rectifier).

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 Segment

Q1 FY15 revenue: EUR 1,128m

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	Microcontroller-based smart
power modules.	card ICs.
Source: IHS Inc., September 2014	Source: IHS Inc., 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 Inc., "Annual Light Vehicle Production and Sales 2007 – 2020", January 2015 update

Semiconductor value per car

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

LITIX™ Automotive LED Drivers Are Gaining Broad Traction in Exterior Lighting

LITIX™: Infineon Automotive LED drivers

LED rear lighting LED front lighting

• High level of integration reduces system complexity

• Increased reliability by precise current control and diagnostics

• Highly efficient DC/DC controller and converter

• Broadest flexibility for DC/DC topologies in the market

Design-Wins

• Several premium and volume OEMs
• Ramping now to an annual run-rate of > 100m pieces over five years

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

* ADAS: Advanced Driver Assistance Systems. Sources: IHS Inc., Strategy Analytics, Infineon. All figures refer to mid-term compound annual growth rate of the respective market.

Drives, Home Appliances and Others Show Strongest Growth Rates

Expected growth of market segments

~10% p.a. > 5% p.a. ~5% p.a. > 10% p.a. > 10% p.a.

IPC: ~10% p.a.

Sources: IHS Inc., Infineon. All figures refer to mid-term compound annual growth rate of the respective market.

PMM Aims to Outgrow Its Core Markets

Sources: IHS Inc., ABI Research, Infineon. All figures refer to mid-term compound annual growth rate of the respective market.

CCS is Well Positioned to Grow Faster Than the Market

All figures refer to security microcontrollers. Sources: IHS Inc., Infineon. All figures refer to mid-term compound annual growth rate of the respective market.

Expected Growth Broadly In Line With Historical Averages

Sources: IHS Inc., Strategy Analytics, ABI Research, Infineon. All figures refer to mid-term compound annual growth rate of the respective market.

Table of Contents

Infineon at a Glance

Growth Drivers

Results and Outlook

Q1 FY15 Was Seventh Consecutive Quarter of Year-On-Year Growth

Strong Y-Y-Growth in ATV, PMM and CCS; IPC Lagging Due to Global Economy

Guidance for Q2 FY15 and Total FY15

	Outlook Q2 FY15 (compared to Q1 FY15)		Outlook FY15 (compared to FY14)
Revenue	Increase between 5% and 9%		Increase of 12% +/- 2%-points (prev.: "Increase of 8% +/- 2%-points")
Segment Result Margin	Between 12% and 13%		At the mid-point of the revenue guidance: Between 14% and 15% (previously: "About 14%")
Investments in FY15		€750m About €700m") (previously: "About
D&A in FY15		About €600m
* Including €60m to €70m for Kulim 2 and €21m for Qimonda IP.

G&A Increased Due to Non-Segment Result Expenses Related to Acquistion of IRF

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

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

Working Capital Increased Due to Qimonda Partial Settlement and EU Antitrust Payment

* For definition please see page 26.

FY15 Investments Ratio excl. Kulim 2 and Qimonda IP Would Be Down to ~13%

• * For definition please see page 26.
• ** Including €60m to €70m for Kulim 2 and €21m for Qimonda IP.

Proposal of Dividend of €0.18 Will Increase Capital Returns by €202m in February 2015

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

Gross cash and Net cash negatively affected in the amount of EUR 343m in Q1 FY15 by:

• a) payment of EUR 83m due to the EU antitrust fine, and
• b) EUR 260m for the partial settlement with the Qimonda insolvency administrator

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

2015-01-29 Copyright © Infineon Technologies AG 2015. All rights reserved. Page 26

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.

Financial Calendar

Location	Event
Munich	Annual General Meeting
	Q2 FY15 Results
Zurich	DZ Bank Sustainability Conference
	Q3 FY15 Results
Munich	Baader Investment Conference
Munich	Berenberg Bank and Goldman Sachs German Corporate Conference
Barcelona	Morgan Stanley TMT Conference
	Q4 FY15 and FY 2015 Results
Scottsdale, AZ	Credit Suisse TMT Conference

* 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