Infineon Technologies AG

Investor Presentation • Mar 10, 2009

First Quarter FY2009

Quarterly Update

Infineon Technologies Investor Relations

Disclaimer

This presentation was prepared as of February 6, 2009 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 we operate. These include statements relating to general economic conditions, future developments in the world semiconductor market (including the market for memory products), our ability to manage our costs and to achieve our savings and growth targets, the resolution of Qimonda's insolvency proceedings and the liabilities we may face as a result of Qimonda's insolvency, the benefits of research and development alliances and activities, our planned levels of future investment, the introduction of new technology at our facilities, the continuing transitioning of our production processes to smaller structure sizes, and our continuing ability to offer commercially viable products. These forward-looking statements are subject to a number of uncertainties, including broader economic developments, trends in demand and prices for semiconductors generally and for our products in particular, the success of our development efforts, both alone and with partners, the success of our efforts to introduce new production processes at our facilities, the actions of competitors, the availability of funds, the outcome of antitrust investigations and litigation matters, and actions by Qimonda and its creditors and other interested parties, 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 29th, 2008. 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 in light of developments which differ from those anticipated.

ÆInfineon Results and Outlook

ÆQimonda Update

ÆBusiness Highlights

Q1 FY09 Revenue EUR 830m, Segment Result EUR -102m

Q1 FY09 Revenue and Segment Result per Segment

Feb 6, 2009 Copyright © Infineon Technologies 2009. All rights reserved. Page 5

Focus Areas and Target Markets

Organic Growth of Infineon on Constant Currency Basis

Growth Rate

d d l i i i i i i t t t ƒ
e x c u n g a c q u s o n s v e s u r e s , l l d Q t t t 1 F Y 0 9 F X t ƒ c a c u a e o n c o n s a n r a e s	y o y - -	q o q - -
f i h l i I T n n e o n e c n o o g e s	% 2 6 -	% 3 2 -
A i t t u o m o v e	% 3 6 -	% 3 6 -
I d i l M l i k t & t t n u s r a u m a r e	% 1 6 -	3 0 % -
C h i C d S i & t p a r e c r u y	2 7 % -	2 7 % -
W i l S l i t r e e s s o o n s u	2 7 % -	3 7 % -
W i l i C i i t r e n e o m m n c a o n s u	2 0 % -	2 2 % -

Feb 6, 2009 Copyright © Infineon Technologies 2009. All rights reserved. Page 7

Managing Cash: Working Capital, D&A and CapEx (IFRS)

Gross Cash, Gross Debt and Net Debt

DebtRepurchase:

In the December quarter 2008, Infineon repurchased nominal amounts of EUR 95m of its exchangeable and EUR 22m of its convertible bonds.

Net debt, using nominal debt value, decreased slightly from the previous quarter despite the severe revenue and earnings drop.

Second Quarter FY 2009 Outlook (IFRS)

IFX expects revenues in the second quarter to decrease by approximately 10 percent compared to the first quarter. After the significant decrease in demand in the Automotive and Wireless Solutions segments in the first quarter, the company expects these segments to be more resilient in the second quarter compared to the first quarter. By contrast, the three other segments, Industrial & Multimarket, Chip Card & Security and Wireline Communications, are expected to be more severely affected by the continuing slow-down in the second quarter.

Segment Result

Revenues

Additional savings measures implemented under the IFX10+ program are expected to result in substantial additional cost and cash savings. As a consequence of continued sales declines and an aggressive reduction in factory loading in order to reduce inventory, Infineon expects combined Segment Result margin in the second quarter to be within the range of a negative mid-to-high teens percentage.

Feb 6, 2009 Copyright © Infineon Technologies 2009. All rights reserved. Page 10

Implemented savings in Q1 FY09

• Cost savings of EUR 45m in the OpEx vs. Q4FY08
• Approx. 85% of the announced headcount reduction achieved
• EUR 25m cash outflow for IFX10+ in Q1 FY09
• Exit of employers' union

Additional Savings Measures:

• Reduced work hours in production sites Regensburg and Dresden
• Change in bonus scheme for 2009 fiscal year
• New and very stringent travel policy
• CapEx reduction from EUR 300m to EUR 200m for FY09

ÆInfineon Results and Outlook

ÆQimonda Update

ÆBusiness Highlights

Qimonda

Infineon may be exposed to a number of significant liabilities relating to the Qimonda business, including pending antitrust and securities law claims, potential claims for repayment of governmental subsidies received, and employee-related contingencies.

IFX increased provisions and allowances by Euro 195 million.

Unrecognized currency translation effects of EUR 100m in Q2 FY08.

Deconsolidation of Qimonda in Q2 FY09.

The recognition of such accumulated losses will not have any impact on Infineon's shareholders' equity.

ÆInfineon Results and Outlook

ÆQimonda Update

ÆBusiness Highlights

Automotive Segment Outstanding Quality and Satisfied Customers

Infineon gained another significant design win with a major European Tier 1 for the 32bit TriCore microcontrollerfamily. The ECUs with Infineon microcontroller for engine and gearbox management will ramp in 2012.

Industrial & Multimarket Segment Reducing Losses in the Whole Energy Chain

Chip Card & Security Segment Supplier to Major National Projects

(Extract)

Infineon has implemented projects in more than 60 countries.

Feb 6, 2009 Copyright © Infineon Technologies 2009. All rights reserved. Page 17

W i l S l i t r e e s s o u o n	S t s e g m e n
N G i t t e e n e r a o n x	U l L C t t r a o o s w - -	S i l n g e	C h i p

third Generation Single Chip

X-GOLD™110

Samples available Q2 CY09

65nm technology

MP3 and FM radio

Ultra-Low-Cost segment (GSM)

Baseband + RF Trans. + Power Mgmt

Wireless Solutions Segment Leading RF Technology

• Worlds most advanced LTE multimode trans.
• LTE / 3G / 2G singl e chip RF CMOS tra ns.
• up to 150 Mbps downlink
• DigRF v4 interface

• 65nm standard CMOS technol og y

• 3G / 2G single chip tra nsceiver

• low cost 3G market (China and India)
• DigRF v3.09 interface
• eliminating LNA and Rx filters
• enabling lowest BOM for 3G RF subsystems
• 130nm standard CMOS technol ogy

Wireline Communications Segment Leading Single-Chip ADSL Gateway Solution

Highlights:

• True single-chip ADSL2+ solution with smallest footprint in the market (17 x 17 mm²)
• High performance 32-bit smart CPU architecture
• Support for high WLAN 802.11n throughput of more than 150Mbit/s
• Advanced IPTV features for highest quality of experience
• Support of EU Code of Conduct on Energy Consumption of Broadband Equipment

Operations Fast Reaction to Drastic Volume Reduction

The current focus is on idle cost management to conserve cash. Volume decrease is even higher than revenue decrease due to stock netting.

b F M t a a n a g e m e n	f b h d T " t e m p o r a r a s o n y u w ( ) C h i C h i t t r s m a s n e s e n e e a r e c w y , I i f l f S i l i f d d " n s o u r c n g o v o u m e r o m c o n o u n r y a n S b t t u c o n r a c o r s R d i f d i i i t t t, t " e c o n o p r o c e e q p m e n c o n s e c e u u v u u v d i f i l i i d t t t t r e c o n o m a n e n a n c e e e c r c a n u y , i l i t t m a e r a c o n s m p o n u F h i d i t t t " u r e r n v e s r e u c o n
L b C t a o r o s M t a n a g e m e n	d i f k R " t t e c o n o e m p o r a r o r e r s u y w S h i k i i d l t t " o r m e w o r n g u n p a e a v e , R d i f h i f d i f i d t t t t " e u c o n o s s r e u c o n o o v e r m e a n , i t v a c a o n h d d i F H " t t t u r e r e a c o u n r e u c o n

Infineon Condensed Consolidated Statements of Operations (IFRS)

3 t hs m on			de d e n
in Eu i l l io ro m n	De 3 1, 0 7 c	Se 3 0, 0 8 p	De 3 1, 0 8 c
Re ve nu e	1, 0 9 0	1, 1 5 3	8 3 0
Co f g ds l d t o s oo so	( 0 ) 7 5	( 8 0 ) 7	( 6 8 ) 7
Gr f i t os s p ro	3 8 5	3 7 3	1 5 2
Re h a d de lop t e se ar c n ve m en xp en se s	( ) 1 8 1	( ) 1 7 4	( ) 1 4 9
Se l l ing l a d a dm in is ive tra t g en era n ex p en se s ,	( 1 3 6 )	( 1 0 ) 5	( 1 1 2 )
O he ing inc t t r o p er a om e	3 3	1 7	3
O he ing t t r o p er a ex p en se	( ) 1 9	( ) 3 1 5	( ) 1 1
( ) Op in inc lo t er a g om e ss	8 2	( ) 2 4 9	( ) 1 1 7
F ina ia l inc nc om e	1 8	2 1	6 0
F ina ia l e nc xp en se	( 4 0 )	( ) 5 7	( 6 ) 5
Inc fro inv d fo ing he i ho d, tm ts te t ty t t om e m es en ac co un r u s e q u me n e	-	1	1
In ( lo ) fro in ing io be fo in t t tax co m e ss m co n o p er a ns re co m e es u	6 0	( ) 2 8 4	( ) 1 1 2
Inc tax om e ex p en se	( ) 1 2	( ) 1 3	( ) 4
In ( lo ) fro in ing io t t co m e ss m co n o p er a ns u	4 8	( 2 9 ) 7	( 1 1 6 )
Lo fro d isc inu d ion f inc t t t o ta ss m on e op er a s, ne om e xe s	( ) 5 7 7	( 8 ) 5 7	( 2 8 8 )
Ne t lo ss	( ) 5 2 9	( ) 8 8 4	( ) 4 0 4
A i bu b le t tr ta to :
M ino i in ty te ts r res	( ) 1 2 0	( ) 1 7 3	( ) 3 0
S ha ho l de f In f ine Te hn log ies A G re rs o on c o	( ) 4 0 9	( ) 7 1 1	( ) 3 7 4

Basic and diluted earnings (loss) per share attributable to shareholders of

Infineon Technologies AG (in Euro)*:

W ig h d a ha d ing ( in i l l ion ) – ba ic d d i lu d te ts ta te e ve ra g e s re s o n m s an u	0 7 5	0 7 5	0 7 5
Ba ic d d i lu d e ing ( los ) ha fro inu ing ion te t t s an ar n s s p er s re m co n o p er a s	0. 0 5	( ) 0. 4 5	( ) 0. 1 6
Ba ic d d i lu d los ha fro d isc inu d o ion te t t s an s p er s re m on e p er a s	( ) 0. 6 0	( ) 0. 5 0	( ) 0. 3 4
Ba ic d d i lu d lo ha te s an ss p er s re	( 0. 5 5 )	( 0. 9 5 )	( 0. 5 0 )

Infineon consolidated Balance Sheet (IFRS)

in Eu mi llio ro n	Se 30 08 p ,	De c 3 1, 08
As ts se
Cu nt a ts: rre sse
Ca sh d c h e iva len ts an as qu	749	64 7
Av aila ble -fo ale fin cia l a ts r-s an sse	134	132
Tra de d o the iva ble an r re ce s	799	52 1
Inv ies tor en	665	66 1
Inc eiv ab le e t om ax rec	29	19
Ot he t fi nci al a ts r c urr en na sse	19	49
Ot he t a ts r c urr en sse	124	12 7
As cla ssi fie d a s h eld fo r d isp l ts se osa	2, 129	1, 93 3
To tal nt ts cu rre as se	4, 648	4, 08 9
Pro lan nd uip rty t a nt pe , p eq me	1, 310	1, 20 8
Go od wil l a nd ot he r in tan ible set g as s	443	42 8
Inv ted fo sin the uity eth od est nts me ac co un r u g eq m	20	21
De fer red ta ts x a sse	400	41 1
Ot he r fi nci al a ts na sse	133	11 1
Ot he ts r a sse	28	21
To tal ts as se	6, 982	6, 28 9
in mi llio Eu	Se 30 08	De c 3 08
ro n Lia bil itie nd sh ho lde rs' uit	p ,	1,
s a are eq y Cu nt l iab iliti
rre es : Sh de bt d c ritie f lo de bt ort -te t m atu -te	207	21 2
rm an urr en s o ng rm Tra de d o the ble	506	31 7
an r p aya s Cu vis ion nt	424	43 9
rre pro s Inc ble e t om ax	87	99
pa ya Ot he t fi nci al liab iliti r c urr en na es	63	77
Ot he t lia bili ties r c urr en	263	23 1
Lia bili tie cia ted ith cl ifie d a s h eld fo r d isp l ets s a sso w ass ass osa	2, 123	1, 92 7
To tal lia bil itie nt cu rre s	3, 673	3, 30 2
Lo de bt -te ng rm	963	86 0
Pe nsi lan nd si mil itm ent on p s a ar co mm s	43	42
De fer red x l iab iliti ta es	19	33
Lo isio -te ng rm pr ov ns	27	11 3
Ot he r fi nci al liab iliti na es	20	3
Ot he r lia bili tie s	76	73
To tal lia bil itie s	4, 82 1	4, 42 6
Sh ho lde rs' uit are eq y:
Or din sh ital ary are ca p	1, 499	1, 49 9
Ad dit ion al id- in c ita l pa ap	6, 008	6, 00 8
Ac lat ed de fici t cu mu	( 2) 5, 25	( 6) 5, 62
Ot he of uity ts r c om po nen eq	( 164 )	( 79 )
To tal uit ttr ibu tab le to sh ho lde of Inf ine Te ch log ies AG eq y a are rs on no	2, 09 1	1, 80 2
Mi rity in ter ts no es	70	61
To tal uit eq y	2, 161	1, 86 3
To tal lia bil itie nd uit s a eq y	6, 982	6, 28 9

Infineon Condensed Consolidated Statements of Cash Flows (IFRS)

3 h d d t m o n s e n e	De ber 31 cem , 200 7	De ber 31 cem , 200 8
	(€ m illio ns)	(€ m illio ns)
Ne t lo	529	404
ss Les et l fro m d isco ntin ued tion s: n oss op era s	( ) 577	( ) 288
Adj ile n et l h p ide d b (us ed in) rati iviti ust nts to to act me rec onc oss cas rov y ope ng es:
De cia tion d a rtiz atio pre an mo n	147	145
Pro vis ion for do ubt ful ts acc oun	-	1
Ga ins les of bus ine nd inte ts i ubs idia ries on sa sse s a res n s	( 28)	( 1)
Los (g ain s) o n d isp ls o f p lan nd ipm erty t, a ent ses osa rop , p equ	13	-
e fr d fo Inc inv est nts nte ing the uity eth od om om me ac cou r us eq m	-	( 1)
Sto ck- bas ed ion sat com pen De fer red inc e ta	1	- 3
om xes Tra de and oth eiva ble er rec s	- 70	250
Inv ent orie s	( 28)	5
Oth nt a ts er c urre sse	( 7)	( 46)
Tra de and oth abl er pay es	( 75)	( 179 )
Pro vis ion s	( 29)	( 66)
Oth nt l iab ilitie er c urre s	( 16)	( 5)
Oth nd liab ilitie ts a er a sse s	19	( 8)
Inte cei ved t re res	8	9
Inte id t pa res	( 9)	( 7)
(p ) Inc e ta cei ved aid om x re	4	21
Ne sh vid ed by rati iviti fro inu ing tion t ca act ont pro ope ng es m c op era s	118	5
fro Ne t ca sh d in ting tivit ies m d isco ntin ued tion use op era ac op era s	( ) 127	( ) 354
Ne sh d in ting tivit ies t ca use op era ac	( 9)	( 349 )
Ca sh flow s fr inv ing tivit ies est om ac : Pu rch f av aila ble -for le f ina nci al a
ts ase s o -sa sse Pro ds fro ale f av aila ble -for le f ina nci al a ts cee m s s o -sa sse	( 324 )	- 5
Pro ds fro ale f bu sin and int in sub sid iari sts cee m s s o ess es ere es	- 36	-
t of Bu sin isiti sh uire d ess ac qu ons , ne ca acq	( ) 316	13
Pu rch f in tan ible set nd oth ts ase s o g as s, a er a sse	( 13)	( 11)
Pu rch f pr lan d e ipm rty, t an ent ase s o ope p qu	( 98)	( 29)
Pro ds fro ale f pr lan d e ipm rty, t an ent cee m s s o ope p qu	3	-
Ne t ca sh d in inv est ing tivit ies fro ont inu ing tion use ac m c op era s	( ) 712	( 22)
Ne sh vid ed by (us ed in) inv ing tivit ies fro m d isc inu ed rati t ca est ont pro ac ope ons	( 64)	307
(us in) Ne t ca sh vid ed by ed inv est ing tivit ies pro ac	( ) 776	285
Ca sh flow s fr fin ing tivit ies om anc ac :
Ne t ch e in sh m d ebt ort- ter ang	-	10
fin Ne t ch e in late d p arty ial eiv abl and ble ang re anc rec es pa ya s	( 3)	( 2)
Pro ds fro m i f lo de bt term cee ssu anc e o ng-	102	1
Pri nci l re of lon m d ebt nts ter pa pay me g-	( 9)	( 84)
Ch e in stri cte d c ash ang re	-	( 1)
Div ide nd min orit inte nts to ts pay me res y	( 65)	-
Ca ital ntri but ion p co	-	( 5)
Ne t ca sh vid ed by (us ed in) fina nci act iviti from ntin uin atio pro ng es co g o per ns	25	( 81)
Ne sh vid ed by (us ed in) fina nci iviti from dis tinu ed rati t ca act pro ng es con ope ons	( 38)	19
Ne t ca sh d in fin ing tivi ties use anc ac	( 13)	( 62)
Ne t de in h a nd h e iva len ts cre ase cas cas qu	( 798 )	( 126 )
Effe f fo reig xch han sh and sh iva len ct o te c ts n e ang e ra ges on ca ca equ	( 8)	( 9)
Ca of sh and sh iva len ts a t be inn ing iod ca equ g per	1,8 09	1,1 71
Ca sh and sh iva len ts a t en d o f p erio d ca equ Les s: C ash d c ash uiv ale end of iod fro m d isc inu ed rati nts at ont an ons	1,0 03 502	1,0 36 389
eq per ope Ca sh and sh iva len d o f p erio d fr ntin uin atio ts a t en ca equ om co g o per ns	501	647

Copyright © Infineon Technologies 2009. All rights reserved. Page 25

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