Infineon Technologies AG — Investor Presentation 2007

Jan 5, 2007

2006 Financial Year Roadshow

November 17, 2006

Morgan Stanley TMT Conference Barcelona

Ulrich Pelzer Corporate VP Investor Relations

Infineon Never stop thinking

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Infineon

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.

Full Year Roadshow

November 2006

Page 2

Copyright © Infineon Technologies 2005. All rights reserved.

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Infineon

• Financials and Outlook
• Infineon: Competencies & Drivers
• Communication Solutions
• Automotive, Industrial & Multimarket
• Appendix (Key Financials, Ratios, Financial Calendar)

Full Year Roadshow November 2006 Page 3 Copyright © Infineon Technologies 2005. All rights reserved.

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Infineon

Q4 FY 06 Results:

Revenues of EUR 2.29 bn and EBIT of EUR 30 m

[EUR m] Infineon total

[EUR m] COM

[EUR m] AIM

[EUR m] Qimonda

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November 2006

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Capital Intensity and Financing of IFX Logic

Outlook for CapEx and D&A

Financial structure Logic-business for the past quarters

Copyright © Infineon Technologies 2005. All rights reserved.

Full Year Roadshow

November 2006

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Business Groups' Q1 FY07 Outlook

Revenues and EBIT, excluding Qimonda and before charges, to decrease, driven mainly by the impact of the insolvency of BenQ Mobile's German subsidiary on COM.

COM

• COM revenues and EBIT are expected to decline significantly qoq, mainly due to loss of business as a result of the insolvency of the German subsidiary of BenQ Mobile.

AIM

• Revenues flat or down slightly from high Q4 level; EBIT to decrease qoq driven by seasonality and temporary effects.
• Revenues and EBIT in auto to decrease slightly qoq given seasonality and volume reductions at U.S. car manufacturers.
• Industrial revenue to grow slightly; EBIT to decline given lack of scale economies in Kulim fab.
• ASIC and chipcard seasonally weak.

C & E

• Anticipated EBIT improvement before restructuring charges qoq.
• Potential charges of approximately Euro 30 million expected, resulting from planned restructuring in baseband.

Copyright © Infineon Technologies 2005. All rights reserved.

Full Year Roadshow

November 2006

Page 6

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Infineon

• Financials and Outlook
• Infineon: Competencies & Drivers
• Communication Solutions
• Automotive, Industrial & Multimarket
• Appendix (Key Financials, Ratios, Financial Calendar)

Full Year Roadshow November 2006 Page 7 Copyright © Infineon Technologies 2005. All rights reserved.

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Key Growth Drivers / Focus Areas

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

Security & Safety

• Protection and privacy of personal and company data
• Secure e-commerce and identification
• Automotive safety

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November 2006

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Infineon

COM Growth Drivers

Mobility

Source: Gartner 2006

Connectivity

Source: Infonetics Research 2006

Copyright © Infineon Technologies 2005. All rights reserved.

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AIM Growth Drivers

Energy Efficiency

Different governmental requirements:

Europe: Euro 5 norm coming 2009

USA: Energy Star, July 2007, will require PC's to be 65% more power efficient than current models.

Japan: already highest regulatory standards

Security & Safety

Source: 1) EuroSmart 2006 2) Frost&Sullivan 2006

Copyright © Infineon Technologies 2005. All rights reserved.

Full Year Roadshow

November 2006

Page 10

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Infineon

• Financials and Outlook
• Infineon: Competencies & Drivers
• Communication Solutions
• Automotive, Industrial & Multimarket
• Appendix (Key Financials, Ratios, Financial Calendar)

Full Year Roadshow November 2006 Page 11 Copyright © Infineon Technologies 2005. All rights reserved.

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Infineon

Broadband Access Design-Win Momentum Continues

| VDSL2 „VINAX“ | ■ Design-Win at major Korean customers ■ Top European customer | | --- | --- | | ADSL2+ „Geminax-MAX“ | ■ Design-Win at two customers based in APAC ■ Major European customer | | ADSL & VoIP „Amazon, Danube“ | ■ 4 Design-Wins for ADSL & VoIP ■ 2 of the top 5 world wide ADSL-CPE Manufacturer | | VoIP „Vinetic“ | ■ Design-Wins at two Japanese customers ■ Major global customer | | SHDSL.bis „Socrates-4e“ | ■ Leading Chinese DSLAM customer ■ Major global customer, based in EU |

Full Year Roadshow

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Infineon

RF Transceiver: CMOS Leadership Turns Into Design-Wins

| 2 / 2.5 G GSM / GPRS | 2.75 G EDGE | 3 G WCDMA | | --- | --- | --- | | SMARTi SD SMARTi SD2 Technology: 130nm CMOS | SMARTi PM SMARTi PM2 130nm CMOS | SMARTi 3G SMARTi 3GE 130nm CMOS | | Customer | Air Interface | | --- | --- | | Samsung | EDGE | | Customer | EDGE | | Customer | WCDMA | | Customer | WCDMA / EDGE | | LG (on platform) | EDGE | | Panasonic (on platform) | WCDMA / EDGE |

Collection of major design-wins

Copyright © Infineon Technologies 2005. All rights reserved.

Full Year Roadshow November 2006 Page 13

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Infineon

RF/Baseband Integration, HSDPA and More

| | 2G / 2.5G GSM / GPRS | | 2.75G EDGE | | 3G UMTS | 3.5G HSDPA | | --- | --- | --- | --- | --- | --- | --- | | Platform | ULC1 | ULC2 | | MP-E | MP-EU | MP-EH | | Baseband | E-GOLDradio | E-GOLDvoice (incl. SRAM) | | S-GOLD2 | S-GOLD2 + co-processor | S-GOLD3H | | RF Transceiver | E-GOLDradio | E-GOLDvoice (incl. SRAM) | | SMARTi PM | SMARTi PM/3G | SMARTi 3GE | | Power Management | E-Powerlite | E | | SM-Power | SM-Power1.6 | SM-Power3 | | Protocol Stack | ☑ | ☑ | | ☑ | ☑ | ☑ | | Ramp up | ☑ | 1H CY07 | | ☑ | ☑ | CY 2007+ |

Integrated in one chip

Fully used for the purpose of the project.

Copyright © Infineon Technologies 2005. All rights reserved.

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Infineon

Financials and Outlook Infineon: Competencies & Drivers Communication Solutions Automotive, Industrial & Multimarket Appendix (Key Financials, Ratios, Financial Calendar)

Full Year Roadshow November 2006 Page 15 Copyright © Infineon Technologies 2005. All rights reserved.

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Worldwide Automotive Semiconductor Market Continues to Grow; Safety is the Fastest Growing Segment

CAGR 2006-2012

Body

• air-conditioning
• window lifter
• dashboard
• light & illumination

Safety

• ABS
• airbag
• tire pressure sensor

Powertrain

• engine management
• transmission
• vehicle network

Full Year Roadshow

November 2006

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Source: Strategy Analytics 9/2005

Copyright © Infineon Technologies 2005. All rights reserved.

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Infineon

Worldwide Power Semiconductor Market Growth Forecast

Source: IMS 9/2006

Full Year Roadshow

November 2006

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

Worldwide Automotive Semiconductor

Source: Strategy Analytics 2006

Worldwide Power Semiconductor

Source: IMS 2006

Full Year Roadshow

November 2006

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Never stop thinking.