Infineon Technologies AG — Investor Presentation 2008

Jun 11, 2008

Second Quarter FY 2008

Quarterly Update

Dr. Marco Schröter

Member of the Management Board Executive Vice President and Chief Financial Officer (CFO)

Disclaimer

This presentation was prepared as of June 2, 2008 and is current only as of that date.

This presentation includes forward-looking statements about the future of Infineon's business and the industry in which it operates. These include statements relating to future developments in the world semiconductor market, including the market for memory products, Infineon's future growth, the benefits of research and development alliances and activities, Infineon's planned levels of future investment in the expansion and modernization of its production capacity, the introduction of new technology at its facilities, the continuing transitioning of its production processes to smaller structure sizes, cost savings related to such transitioning and other initiatives, Infineon's successful development of technology based on industry standards, Infineon's ability to offer commercially viable products based on its technology, Infineon's ability to achieve its cost savings and growth targets, and the impact of the carve-out of Qimonda, the group's memory products business, its initial public offering, and any further sales of Qimonda shares or other corporate financing measures in that regard.

These forward-looking statements are subject to a number of uncertainties, including trends in demand and prices for semiconductors generally and for Infineon's products in particular, the success of Infineon's development efforts, both alone and with partners, the success of Infineon's efforts to introduce new production processes, the actions of competitors, the availability of funds for planned expansion efforts, and the outcome of antitrust investigations and litigation matters, as well as the other factors mentioned in this presentation and those described in the "Risk Factors" section of the annual report of Infineon on Form 20-F filed with the U.S. Securities and Exchange Commission on December 7th, 2007 or contained in the company's quarterly reports. As a result, Infineon's actual results could differ materially from those contained in these forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements.

Infineon does not undertake any obligation to publicly update or revise any forward-looking statements because of new information, future events or otherwise.

Second Quarter FY 2008 Results: Revenues of € 1.05bn; EBIT of € +36m

Third Quarter FY 2008 Outlook

I F X	R d l i h l t " e e n e s o n s g q o q v u w y - - b f i d h i i d d l i E B I T t t t t " e o r e n e g a n s a n c a r g e s a n c p a e o e c n e b h l d i i i t t q o q u s o u r e m a n p o s v e - - ,
C O M	R b b f l t t t " e v e n u e s o e a o u a q o q - - d b R i i l l k i i i i h t t t " e s e r e e s s r e e n e o o o n c o m n a o n v w v u u w i i i d i h h f t t t t t c u s o m z a o n e x p e n s e s a s s o c a e w e r a m p o n e w l f h l d l d d l i i E B I T l d i i t t t p a o r m s s o u e a o a e c n e n e x c u n g n e g a n s d h d b d b h d B t a n c a r g e s r o a a n o e n c a n g e q o q u - -
A I M	d b d R l i l i l i i t t t " e e n e s o e c n e a o s n g e g p e r c e n a g e q o q v u y w - - - i d i l l i k h d A I M " t t t & t t u o m o v e n u s r a u m a r e u n c a n g e q o q ; - - , S i A S I C d d d l i d i t t t t & e c u r y o e c r e a s e u e o e c o n s o a o n , l i i i h i d t n o r m a a o n n c p c a r z i b f i d h d b E B I T " t t t m a r g n e o r e n e g a n s a n c a r g e s e x p e c e o e ~ 8 % 9 % 5 t 5 o
O O S , C E &	i O O S d l i i d i C d l i R E " t & t e v e n u e s n a n e m n a e r e v e n u e s n o e c n e q o q - - C b i d b f i d h i i d E B I T t t t t " o m n e e o r e n e g a n s a n c a r g e s a n c p a e o b € 2 0 e m ~ -

Focus Areas and Growth: Energy Efficiency, Communications, Security

Powerful Demand Drivers

Organic Growth of Infineon at Constant Currency

Growth Rate

l d i i i i d i i t t t e x c u n g a c q u s o n s v e s u r e s ƒ , l l d Q 2 F Y 8 F X t t t 0 t c a c u a e o n c o n s a n r a e s ƒ	o y y - -	q o q - -
f i I n n e o n	% 1 0 +	% 2 -
A i I d i l M l i k t t t & t t u o m o v e n u s r a u m a r e ,	9 % +	1 % +
C i i S l i t t o m m n c a o n o o n s u u	% 1 0 +	% 1 5 -

Enviroment Awareness as Market Growth Driver for Semiconductors in Automobiles

Market Drivers

European Union requires to reduce CO2 emissions to be less than 120g/km by 2015 and 95g/km by 2020

• Demand for increased fuel economy due to decreasing energy resources
• Demand for reduction of CO2emission due to stricter legislations
• Performance is one integral part of the driving experience

Safety Applications getting Standard Equipment in Automobiles

Market Driver

• Increasing demand for safety features in cars like Airbags, ABS and ESP; also in emerging markets
• Higher processing power for stability and safety & chassis functions
• Legislation like e-Call (emergency-call) will promote integration between safety and communication

Automotive Safety IC Market Growth

Emerging Markets have Highest Car Growth Rate

Market Driver

• More and more people can afford a car
• Integration of functions and centralisation of functions
• Scalable platforms

Sales in Small Car Segment

Our Industrial Power Semiconductors Help Reduce Losses Along the Entire Energy Distribution Chain

Security: Growth in Payment Chip Cards

Introducing 65nm Single-Chip Solutions: Mobile Internet and Music for Emerging Markets

Margin Improvements

Financials and OutlookExecuting on Improving Profitability (US GAAP)

I f i E B I T n n e o n ( ) E B I T i m a r g n	1 0 1 ( ) % 5	l i d t o w o m i l d i i t s n g e g - i m a r g n
----------------------------------------------------------------------------------------------------------------------	---------------------------------	--------------------------------------------------------------------------------------------------------------------------------	--

Infineon defines Infineon EBIT as earnings (loss) from continuing operations, before interest and tax.

*) H1 FY 2008: Includes net gains of EUR 3 million relating primarily to gains of sale of part of bipolar business and in-process R&D charges from the LSI Mobile Phone Group acquisition.

Financials and OutlookDetailed Outlook for AIM and COM (US GAAP)

Automotive, Industrial & Multimarket

• Q2 FY08: Reported sales flat y-o-y; growth excl. divestitures and on constant currency basis +9% y-o-y
• FY 2008: Expect sales and EBIT excl. one-offs to be down slightly y-o-y due to adverse currency impact and deconsolidation of businesses
• FY 2009: divestitures and currency impact limit growth potential; EBIT margin excluding net gains and charges to improve; additional positive effects from the program "IFX 10-Plus"
• Q2 FY08: Sales excl. acquisitions and on constant currency rate grew +10% y-o-y
• Q3 revenues to be about flat from the previous quarter; revised revenue outlook in combination with customization expenses associated with the ramp of new platforms should lead to a decline in EBIT excluding net gains and charges from Q2
• Q4 revenues and EBIT excluding net gains and charges to improve compared to Q3
• FY 2009: Revenue should grow from FY08 levels; cost savings to come from program "IFX 10-Plus"

Communication Solutions

Financials and OutlookDetailed Outlook for OOS and C&E (US GAAP)

• FY 2008: Sales to decline y-o-y as Dresden 200-mm fab shipped last wafers to QI in Q3 FY08; EBIT around break-even or slightly negative
• FY 2009: further y-o-y sales decline; no supplies to QI for entire year

Corporate & Eliminations

• Q2 FY 2008 results included charges of €8m (OOS and C&E combined)
• FY 2008: Expect to contain EBIT loss before charges at ~ EUR 40-60 m
• FY 2009: EBIT loss comparable to FY 2008 before charges

Capital Intensity: from 12% CapEx/Sales in FY 07 to ~10% or below in FY 08, even lower possible thereafter

Lowering CapEx/Sales ratio to 10% or below

Capital Structure Update

Gross Cash, Gross Debt and Net Debt

Qimonda Update

Lowering our Stake in Qimonda

Complete Mobile Phone Platform Solutions for Major Growth Markets

T t a r g e k t m a r e s	/ 2 G / G S M	2 G 5 G P R S		2 G 7 5 E D G E		3 G 5 H S D P A
l f P t a o r m	T M X M M 1 0 1 0 ( ) U L C 2	T M X M M 1 1 3 0	T M X M M 2 1 3 0	T M X M M 2 0 6 0 ( ) M P E l i t e -	T M X M M 8 2 0 0	T M X M M 8 6 0 0 ( ) M P E H -
B b d a s e a n	1 0 ) S 1 O M	3	3	6 0 ) S 2 O	T M X G O L D 2 0 8 -	T M X G O L D 6 0 8 -
C O S R F M i t r a n s c e e r v	M T C D m L n O 0	1 ) S 1 M O M T D C	1 ) 2 S M O M T D C	M M T C D m L n	S i M A R T P M	S i G M A R T 3 E
P o w e r t m a n a g e m e n	3 G 1 ( - X	m L O n 5 6 G ( -	m L O n 5 6 G ( -	O 0 3 G 1 ( - X	T M X P M U 6 0 0 -	T M X P M U 6 1 1 -
F M d i -r a o		X	X
P l t r o o c o k t s a c	3	3	3	3	3	3

Integrated in one chip

IFX Shareholder Structure (as officially reported per 31-Mar-2008)

total: 100 per cent = 749,742,085 shares (as of 2008-03-31)

*) thereof: Alliance Bernstein L.P. 3.18%, AXA Investment Managers 0.55%, AXA Rosenberg 0.02%

Infineon P&L post Qimonda Reclassification

		3 m hs de d t on en		6 m hs t on	de d en
in Eu ill ion ro m	Ma r 3 1, 07	De 3 1, 07 c	Ma r 3 1, 0 8	Ma r 3 1, 07 *	Ma r 3 1, 0 8
Ne les t s a	97 8	1, 0 9 0	1, 0 49	1, 9 3 6	2, 13 9
Co f g ds ld st o oo so	( 6 6 3 )	( 70 1 )	( 6 8 1 )	( 1, 3 05 )	( 1, 3 8 2 )
Gr f it os s p ro	15 3	3 8 9	3 6 8	6 3 1	75 7
Re h a nd de lop nt se arc ve me ex p en se s	( ) 18 6	( ) 20 6	( ) 18 1	( ) 3 8 1	( ) 3 87
Se llin l a nd dm ini str at ive g, g en era a ex p en se s	( ) 11 3	( ) 13 7	( ) 13 6	( ) 24 1	( ) 27 3
Re str tur ing ha uc c rg es	( ) 20	( ) 3	( ) 6	( ) 22	( ) 9
Ot he ing in t et r o p era co me , n	4	3 0	2	4	3 2
Op ing inc ( los ) t era om e s	–	73	47	( 9 )	12 0
Int st et ere ex p en se , n	( 11 )	( 6 )	( 10 )	( 21 )	( 16 )
Eq ity in rni f a iat d c ies et u ea ng s o ss oc e om p an , n	–	–	2	–	2
Ot he ing in ( ), t t r n on -op era co me ex p en se ne	9	2	( 6 )	12	( 4 )
Mi rity in ter ts no es	( 3 )	( 10 )	( ) 7	( 4 )	( 17 )
Inc ( los ) be fo inc e t om e s re om ax es	( 5 )	5 9	26	( 22 )	8 5
Inc e t om ax ex p en se	( 20 )	( 14 )	( 7 )	( 3 3 )	( 21 )
Inc ( los ) fro inu ing ion nt at om e s m co op er s	( 25 )	45	19	( 5 5 )	6 4
Ne inc ( los ) fro d isc inu d o ion f ta t t t et om e s m on e p era , n o x	49	( 44 1 )	( 1, 3 9 0 )	19 9	( 1, 8 3 1 )
( ) Inc los be fo tra d ina los om e s re ex or ry s	24	( ) 3 9 6	( ) 1, 37 1	14 4	( ) 1, 76 7
Ex d ina los f ta tra t o or ry s, ne x	( 35 )	–	–	( 35 )	–
inc ( ) Ne t los om e s	( ) 11	( ) 3 9 6	( ) 1, 37 1	10 9	( ) 1, 76 7

Basic and diluted earnings (loss) per share before extraordinary loss*:

Shares in millionsWeighted average shares outstanding – basic and diluted 748 750 750 748 750 Basic and diluted earnings (loss) per share from continuing operations (0.04) 0.06 0.03 (0.08) (0.09) Basic and diluted earnings (loss) per share from dicontinued operations 0.07 (0.59) (1.85) 0.27 (2.44) Earnings (loss) per share (in Euro) – basic and diluted (0.01) (0.53) (1.82) 0.15 (2.35)

* Quarterly earnings (loss) per share may not add up to year-to-date earnings (loss) per share due to rounding.

Infineon Balance Sheet post Qimonda Reclassification

in Eu i l l ion ro m	Se 3 0, 0 7 p	Ma 3 1, 0 8 r
As ts se
Cu nt ts: rre as se
Ca h a d c h e iva len ts s n as q u	1, 0 7 3	2 2 7
Ma ke b le it ies ta r se cu r	2 1 0	6 2 3
Tr de iva b le, ts t a ac co un rec e ne	6 2 0	6 0 7
Inv ies tor en	5 9 8	6 1 6
De fe d inc tax rre om e es	3 4	2 8
O he t t a ts r c ur ren ss e	3 0 3	3 2 6
As he l d fo le ts se r s a	6 3 5, 5	3, 2 0 5
To ta l c nt ts ur re as se	8, 4 9 1	5, 9 4 7
Pr ty, lan t a d e ip nt, t op er p n q u me ne	1, 4 6 2	1, 3 7 3
Int i b le ts, t an g as se ne	8 9	3 4 7
Lo -te inv tm ts ng rm es en	2 4	2 9
Re tr ic te d c h s as	7 7	7 7
fe De d inc tax rre om e es	4 4 6	4 2 4
Pe ion ts ns as se	6 0	5 7
O he t ts r a ss e	1 6 0	1 3 7
To ta l a ts ss e	1 0, 8 0 9	8, 3 9 1
in Eu i l l ion ro m	Se 3 0, 0 7 p	Ma 3 1, 0 8 r
L ia b i l it ies d s ha ho l de ' e ity an re rs q u
Cu l ia b i l it ies nt rre :
S ho de b d c it ies rt-t t a t m tu er m n ur ren a r	2 6 0	1 8 8
Tr de b le ts a ac co un p ay a
	5 9 6	4 4
Ac d l ia b i l it ies cru e	3 7 9	3 2
De fe d inc tax rre om e es	1 0	1
S ho ion l ia b i l it ies rt-t er m p en s	5	6 0 0 6
O t he t l ia b i l it ies r c ur ren	3 2 5	2 9 6
fo L ia b i l it ies he l d le r s a	1, 8 9 8	1, 9 5
To l c l ia b i l it ies ta nt ur re	3, 4 7 3	3, 2 2
Lo de b -te t ng rm	1, 1 4 9	1, 1 9
Pe ion l ia b i l it ies ns	8 8	8
De fe d inc tax rre om e es	2 3	1
Lo d l ia b i l it ies -te ng rm ac cru e	2 2	2
O he l ia b i l it ies t r	1 0 7	8
To l l ia b i l it ies ta	4, 8 6 2	4, 6 2
M ino ity int ts r er es	1, 0 3 3	7 0
To ta l s ha ho l de ' e ity re rs q u	4, 9 1 4	5 1 1 5 9 1 7 4 3 3, 0 6 4

Financial Calendar