Infineon Technologies AG — Investor Presentation 2007

Jan 30, 2007

First Quarter 2007 Roadshow

Ulrich Pelzer CVP Investor Relations

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Disclaimer

Please note that while you are reviewing this information, this presentation was created as of the date listed, and reflected management views as of that date. This presentation contains certain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties include, but are not limited to the Risk Factors noted in the Company's Earnings Releases and the Company's filings with the Securities and Exchange Commission.

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Financials and OutlookFinancials and Outlook

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Infineon: Competencies & DriversInfineon: Competencies & Drivers

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Communication SolutionsCommunication Solutions

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Automotive, Industrial & MultimarketAutomotive, Industrial & Multimarket Appendix (Key Financials, Ratios, Financial Calendar)Appendix (Key Financials, Ratios, Financial Calendar)

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First Quarter FY 2007 Results: Rev. of EUR 2.13 bn; EBIT of EUR 216 m

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----- Start of picture text ----- [EUR m] Infineon Group [EUR m] Infineon(incl. Qimonda) (excl. Qimonda)2,290 2,1311,993 1,9721,7311,606 1,606 1,674973 947 963 996 1,065 994 1,058 958-117 -7% -15% -234 -2% -43 -122 -7% 1% 28 2% 49 1% 30 10% 216 -14% -134 -12% -109 -8% -77 0% -4 0% -2 -5% -51 -16% -174 -1% -9Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1FY05 FY05 FY05 FY06 FY06 FY06 FY06 FY07 FY05 FY05 FY05 FY06 FY06 FY06 FY06 FY07Communication QimondaAutomotive, IndustrialSolutions 1,232& Multimarket 1,173978928733 714 740 710 6786528% 10% 8% 9% 8% 334 308 266 297 236 10% 17% 225*) 19%51 73 57 64 55 -6% -9% -23% -40% -24% -17% 3% 100 204*)30-21 -29 -61 -120 -57 -118Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1FY06 FY06 FY06 FY06 FY07 FY06 FY06 FY06 FY06 FY07 FY06 FY06 FY06 FY06 FY07[EUR m] [EUR m] [EUR m] *)EBIT excl. minority interests30-Jan-07 Copyright © Infineon Technologies 2007. All rights reserved. Page 4----- End of picture text -----

Second Quarter FY2007 Outlook as per 29-Jan-07

IFX Revenues and EBIT excluding Qimonda and before charges are Logic expected to remain at least flat.

COM

� Revenues and EBIT flat q-o-q

� Customer ramp-ups mitigate typical seasonal decline in the wireless business; wireline business to be about flat

AIM

• Revenues to increase slightly q-o-q; EBIT margin to improve.

• Auto to grow on ramp ups and seasonality despite continued U.S. auto weakness. Industrial & Multimarket and Security & ASIC to remain broadly flat.

C & E

• EBIT loss before charges basically unchanged q-o-q.

• Charges: significantly less than the EUR 30 m expected originally for fiscal first quarter to be taken mainly for baseband restructuring.

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Fiscal Year 2007 Outlook as per 29-Jan-07

COM � EUR 40 m annualized cost savings to take effect likely from Jun Q 2007 onwards.

� Target: wireless break-even in Dec quarter 2007.

AIM

� Expect cost for Perlach fab closure to disappear Sep Q 2007.

� Kulim fab to break-even middle 2007 calendar year.

• Chipcard to remain around break-even until new products introduced middle of 2007 calendar year.

• OOS/ � Revenues and EBIT in OOS to remain broadly unchanged. C & E � Charges well below EUR 30m in fiscal second quarter in C&E

  • For FY2007 C&E EBIT before charges to be EUR -10m to EUR -15m per quarter.

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Financial Structure of Infineon excluding Qimonda: Solid Financing

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----- Start of picture text ----- Outlook[EUR m] 4Q FY06 1Q FY07 FY 2007 FYfor2008+CapExand D&A CapEx 173 105 450-550 10-12%/Sales (%) 16.4% 11.0% of salesD&A 172 162 550-650 in line/Sales (%) 16.3% 16.9% withCapExFinancial 2000structure: 16001200Logic- 800business 400for the0past Q2 FY 06 Q3 FY 06 Q4 FY 06 Q1 FY 07quarters Gross Cash Gross Debt Convertibles Net Debt545 511 540524[EUR m] 1426 1327 446 1427 1328 412 1585 1330 ´269 1481 3911332----- End of picture text -----

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Financials and OutlookFinancials and Outlook

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Infineon: Competencies & DriversInfineon: Competencies & Drivers

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Communication SolutionsCommunication Solutions Automotive, Industrial & MultimarketAutomotive, Industrial & Multimarket Appendix (Key Financials, Ratios, Financial Calendar)Appendix (Key Financials, Ratios, Financial Calendar)

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Key Growth Drivers / Focus Areas

Energy Efficiency (fuel / electricity)Energy Efficiency (fuel / electricity)

• Improve fuel efficiency in cars

• Efficient power generation, transport, consumption

• Higher efficiency in electrical drives

Mobility & Connectivity

• Mobile phones

• Broadband access

• Wireless connectivity

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Security

• Protection and privacy of personal and company data

• Secure e-commerce and identification

• Automotive safety

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COM Growth Drivers

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----- Start of picture text ----- Mobility Mobile Phone Units by air-interface1500100050002005 2006 2007 2008 2009 2010Others GSM/GPRS EDGE WCDMA / EDGE HSDPA / WCDMA / EDGESource: Gartner 2006Connectivity 50403020Customer Premises10 Equipment02002 2003 2004 2005 2006 2007 2008 2009Source: Infonetics Research 2006Units (m)Units (m)----- End of picture text -----

30-Jan-07

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AIM Growth Drivers

Energy Efficiency Different governmental requirements:Different governmental requirements:

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Europe:Europe: Euro 5 norm coming 2009 Euro 5 norm coming 2009 USA:USA: Energy Star, July 2007, will require PC‘s Energy Star, July 2007, will require PC‘s to be 65% more power efficient than current models.to be 65% more power efficient than current models. Japan:Japan: already highest regulatory standards already highest regulatory standards

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----- Start of picture text ----- 800+50%+20%600+56%4002000Government, Financial Services, ContactlessHealth [1)] Retail, Loyalty [1)] Technologies [2)]Source: [1)] EuroSmart 2006 [2)] Frost&Sullivan 2006Units (m)062007 2006 2007 2006 200720----- End of picture text -----

Security

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Infineon Businesses

Communication Solutions

Mobile Phone PlatformsMobile Phone Platforms

Feature Phones

Entry Phones

Mobile Software

RF SolutionsRF Solutions

RF Engine

Tuner Systems

Connectivity

BroadbandBroadband

Access

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Automotive, Industrial & Multimarket

AutomotiveAutomotive

Microcontroller

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Automotive Power

Sense & Control

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Industrial & MultimarketIndustrial & Multimarket Power Management & Drives

Discrete Semiconductors

Security & ASICsSecurity & ASICs

ASIC, Design& Security

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Chip Card & Security ICs

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Financials and OutlookFinancials and Outlook

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Infineon: Competencies & DriversInfineon: Competencies & Drivers

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Communication SolutionsCommunication Solutions

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Automotive, Industrial & MultimarketAutomotive, Industrial & Multimarket Appendix (Key Financials, Ratios, Financial Calendar)Appendix (Key Financials, Ratios, Financial Calendar)

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Infineon Drives the Entire Broadband Access Chain

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----- Start of picture text ----- HomeCentralOffice Fiber Copper300-1500 m----- End of picture text -----

IFX products: IFX products: Geminax, Socrates, Geminax, Socrates, etc.etc.

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----- Start of picture text ----- IFX productIFX product : : IFX products: IFX products:VINAX etc.VINAX etc. Danube, Amazon, Danube, Amazon,Vinetic, SLIC-DC, Vinetic, SLIC-DC,Samurai, etc.Samurai, etc.----- End of picture text -----

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Broadband Access Design-Win Momentum Continues

• World’s first VDSL2 RollOut with Deutsche Telekom on CO- and CPE-side in Germany

VDSL2

• „VINAX“

  • World’s second VDSL2 RollOut with Hyndai on CO- and CPE-side in Korea

• ADSL2+ Design-Win at two customers based in APAC

• „GEMINAX-MAX“

  • Major European customer

  • 2 Design-Wins for ADSL & VoIP

  • � WiMax IAD Design-Win at major Japanese customer

ADSL & VoIP „Amazon, Danube“

• Design-Wins at top tier IP-Phone vendors

• � Major global customer

VoIP „Vinetic“

• SHDSL.bis � Leading Chinese DSLAM customer „Socrates-4e“ � Major global customer, based in EU

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RF Transceiver: CMOS Leadership Turns Into Design-Wins

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----- Start of picture text ----- 2G / 2.5G 2.75G 3GGSM / GPRS EDGE WCDMASMARTi SDSMARTi PM SMARTi 3GSMARTi SD2SMARTi PM2 SMARTi 3GE130nm CMOS 130nm CMOS130nm CMOSCustomer Air Interface Shipped more than 230mRF IC‘s in 2006�Samsung EDGE Nr.1 worldwide inRF transceiversCustomer EDGEWorld‘s first EDGECustomer WCDMACMOS RF transceiver �in volumeCustomer WCDMA / EDGELGEDGE World‘s first WCDMA(on platform)CMOS RF transceiver�in volumePanasonicWCDMA / EDGE(on platform)Selection of major design-wins----- End of picture text -----

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ULC1ULC22G / 2.5GGSM / GPRS	ULC1ULC22G / 2.5GGSM / GPRS	ULC1ULC22G / 2.5GGSM / GPRS	ULC1ULC22G / 2.5GGSM / GPRS	ULC1ULC22G / 2.5GGSM / GPRS	ULC1ULC22G / 2.5GGSM / GPRS	MP-E2.75GEDGE	MP-E2.75GEDGE	MP-E2.75GEDGE	MP-E2.75GEDGE	MP-E2.75GEDGE	MP-E2.75GEDGE
	Dradio			oice)			dio		S-GOLD2	S-GOLD2 +co-processor	S-GOLD3H
	L			M			a
	E-GO			OLDvincl. SRA			OLDr		SMARTi PM	SMARTi PM/3G	SMARTi 3GE
				(
E-Powerlite				E-			S-G		SM-Power	SM-Power1.6	SM-Power3
�			�						�	�	�
�			1Q CY07						�	�	CY 2007+

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Successful Ramp of Shipments to New Wireless Customers

EDGE Platform: MP-E

UMTS Platform: MP-EU

Softbank 705P

new: Softbank 706P

Low-Cost: ULC1

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Financials and OutlookFinancials and Outlook

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Infineon: Competencies & DriversInfineon: Competencies & Drivers

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Communication SolutionsCommunication Solutions

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Automotive, Industrial & MultimarketAutomotive, Industrial & Multimarket

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Appendix (Key Financials, Ratios, Financial Calendar)Appendix (Key Financials, Ratios, Financial Calendar)

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Worldwide Automotive Semiconductor Market Continues to Grow; Safety to Grow Fastest

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----- Start of picture text ----- Market in+6.0%USD bnCAGR Infotainment20 CAGR2006-2012 �navigation� car radio4.0%Body �15 air-conditioning� window lifter� dashboard7.0%�light & illumination10Safety� ABS9.7%�airbag�5 tire pressure sensorPowertrain4.5%�engine management0� transmission2006 2007 2008 2009 2010 2011 2012� vehicle networkSource: Strategy Analytics 9/2005(Infotainment = Driver Information + Audio)30-Jan-07 Copyright © Infineon Technologies 2007. All rights reserved. Page 20----- End of picture text -----

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Worldwide Power Semiconductor Market Growth Forecast

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----- Start of picture text ----- +7%MarketCAGRin USDbn1510502006 2007 2008 2009 201030-Jan-07 Source:IMS 9/2006 Copyright © Infineon Technologies 2007. All rights reserved. Page 21----- End of picture text -----

Growth Driver for CoolMOS / OptiMOS: More Applications Require Power Efficiency

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----- Start of picture text ----- CoolMOS CoolMOS CoolMOS CoolMOS1st Gen. 2nd Gen. 3rd Gen. 4th Gen.Computing(PC Silverbox)Aviation [Gaming] EstimatedNotebook Solar +43%Adapter +20%Server SMPS +32%+41%Lighting +107%+113% +32% Total Sales Growth (yoy)1998 2000 2002 2004 2006 2008TelecomModulesGamingGraphics Card EstimatedNotebook +20%+15%Server+4%+107%Motherboard+42%-16%+685% Total Sales Growth (yoy)SFET1 OptiMOS-1 OptiMOS-2 OptiMOS-330-Jan-07 Copyright © Infineon Technologies 2007. All rights reserved. Page 22AC/DCpower conversionCoolMOS forDC/DCforregulationOptiMOS voltage----- End of picture text -----

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Infineon‘s Track Record in Automotive and Power Semiconductor Market Shares

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----- Start of picture text ----- Worldwide Automotive Worldwide PowerSemiconductor Marketshare Semiconductor Marketshare12.9% 12.9%11.4%9.4%9.3%8.4%8.7%8.4% 8.0% 8.1%7.8%7.9% 7.4% 7.6% 7.6%7.6% 7.0% 7.1% 7.2%6.9%7.0%7.1% 6.7%6.8% 6.5%6.4% 6.5% 6.2%5.3%4.8%Bosch Renesas STM Infineon Freescale Toshiba STM IR Fairchild InfineonSource: Strategy Analytics 200630-Jan-07 Copyright © Infineon Technologies 2007. All rights reserved. Source: IMS 2006 Page 232003 2004 2005 2003 2004 2005 2003 2004 2005 2003 2004 2005 2003 2004 20052003 2004 2005 2003 2004 2005 2003 2004 2005 2003 2004 2005 2003 2004 2005----- End of picture text -----

Source: IMS 2006 Page 23

Never stop thinking.

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Financials and OutlookFinancials and Outlook

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Infineon: Competencies & DriversInfineon: Competencies & Drivers

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Communication SolutionsCommunication Solutions

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Automotive, Industrial & MultimarketAutomotive, Industrial & Multimarket Appendix (Key Financials, Ratios, Financial Calendar)Appendix (Key Financials, Ratios, Financial Calendar)

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Profitable Growth: Infineon‘s AIM ex Security & ASICs*

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----- Start of picture text ----- 400IndexEBIT AIM ex300 Security & ASICsSales AIM ex200Security & ASICs(indexed: 1998 = 100)100Total Sales SIA(indexed: 1998 = 100)01998 1999 2000 2001 2002 2003 2004 2005 2006----- End of picture text -----

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*) Minimal inconsistencies possible due to changes in segment reporting 30-Jan-07 Copyright ©

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Key Financials

	Q3 F05	**Q4 F05 **	**Q1 F06 **	**Q2 F06 **	Q3 F06	Q4 F06	Q1 F07
Sales(EUR m)	947	964	996	1,065	995	1,058	958
EBIT (EUR m)	-98	-81	1	7	-51	-174	-9
EBIT margin	-10,3%	-8,4%	0,1%	0,7%	-5,1%	-16,4%	-0,9%
EBIT ex charges (EUR m)	-27	-8	3	11	-22	-11	-9
EBIT marginex charges	-2,9%	-0,8%	0,3%	1,0%	-2,2%	-1,0%	-0,9%
D&A (EUR m)	168	208	150	206	174	172	162
D&A / Sales (%)	17,7%	21,6%	15,1%	19,3%	17,5%	16,3%	16,9%
CapEx (EUR m)	NM	107	49	314	158	173	105
CapEx /Sales(%)	NA	11,1%	4,9%	29,5%	15,9%	16,4%	11,0%
Gross Cash (EUR m)		1,374	1,264	1,426	1,427	1,585	1,481
Gross Debt (EUR m)		1,557	1,593	1,872	1,839	1,854	1,872
Net debt(EUR m)		183	329	446	412	269	391
Employees		26,834	30,561		29,446	29,849	30,071

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Financial Calendar

• Feb 13, 2007 Presentation at 3GSM

• Feb 15, 2007 Annual General Meeting

• Mar 13, 2007 IFX Day

Barcelona Munich Munich

• Apr 27, 2007* Interim Report FQ2 2007

• Jul 27, 2007* Interim Report FQ3 2007

• Nov 14, 2007* Interim Report FQ4 2007

• = Preliminary Date

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