Infineon Technologies AG

Investor Presentation • Nov 30, 2011

CS Tech ConferenceScottsdale, AZ, 29 – 30 November 2011

Infineon Technologies AGDominik Asam, Chief Financial Officer

Infineon Overviewand Financials

Growth Outlook and Margin Resilience

Revenue Split by Division

Full FY 2011 revenue: EUR 3,997m

Tight Customer Relationships are Based on System Knowhow and App Understanding

Infineon Holds Top Positions in All Target Markets

Source: IMS Research, August 2011.Source: Strategy Analytics, April 2011.

Source: IMS Research, August 2011.

Q4 FY11: Maintained SolidTotal Segment Result Margin

Investments Remain High to Exploit Growth Potential

* For definition please see slide 32 in appendix.

High Gross and Net Cash Position Maintained

*Consists of Convertible Bond 2014 (nominal value EUR 137m; book value EUR 114m).

• Gross and net cash increased despite accelerated capital returns in Q4 FY11.
• FY 2011: Repurchases of nominal EUR 59m of CB 2014 (~26m shares underlying) and 4m shares for total of €199m in cash.

Guidance for Q1 and FY 2012

	l k O Q 1 1 2 F Y t u o o ( d Q ) 4 F Y 1 1 t o m p e o c a r	l k O 2 0 1 2 F Y t u o o ( d 2 0 ) F Y 1 1 t o m p e o c a r
R e e n e v u	d l R i t e e n e o e c n e v u b b 0 % 1 t a o y u	d l d M i i i i t s n g e g - d l i t p e c e n a g e e c n e r
l T t o a S t e g m e n l R t e s u M i g n a r	f l 1 3 1 4 % t o o s a e s	d L i t o o m w - - t t e e n s p e c e n a g e r

Infineon Overviewand Financials

Growth Outlook and Margin Resilience

Results and Outlook

New Era: Multiple Factors Driving Demand for Power Semiconductors

Growth: Rising Global Car Production and Silicon Content Drive Market

Electric Vehicles (EV) and Hybrid EVs (HEV) Drive Semiconductor Demand

ICE vs. EV/HEV Semiconductor BOM

• Fuel cost, CO2 reduction and price are main drivers for EVs and HEVs.
• Semiconductor bill-of-material of an EV/HEV is 2 to 3 times higher than total semiconductor bill-of-material on an ICE.
• 50-80% related to IGBT and diode chips in state-of-the-art module packages.

Three Quarters of Incremental Semi Content in Hybrid Vehicles is Power

Semiconductor bill-of-material for ICE and hybrid vehicles in 2015

Source: Strategy Analytics, October 2011.

Every Electricity Conversion Step Requires IFX Components

Semi Content per MW in Wind Turbines Much Higher Than in Trad. Power Plants

Nuclear plant, coal-fired plant

• No fluctuation in amplitude and frequency. Direct grid coupling possible.
• Power semiconductor content: ~ €200 per MW.
• Semiconductors primarily used for uninterruptable power supplies.

Wind turbines

turbines; ~ €9,000 per MW for direct conversion turbines.

Motor Drives and Traction: Focus on Efficient Power Conversion and RPM Control

Direct AC connection

• About 60% of industrial energy is used by electrical motors.
• For each \$1 spent to purchase a more efficient electrical motor, \$100 of energy cost can be saved during the life of such motor.
• Conventional motor drives are being replaced by intelligent inverter-based drives, saving up to 40% energy.
• AC/DC/AC conversion allows permanent control to match output with the needs.
• Power semiconductor content: ~ €5,000 per MWor \$10-100k, depending on application.

10% Growth or More p.a.Expected for Infineon

29 Nov 2011

Sustainable Profitability:We Will Keep High Margins

Infineon:~20% under normal industry conditions~15% through cycle

Target Operating Model

	2 0 F Y 1 1	2 0 2 F Y 1 e	L t o n g e e m r r
R e v e n u e	b E U R 3 9 9 7 n	b D i e c r e a s n g y d i a m l d i i i % t s n g e g -	1 0 % ≥ h t g o p a r w
i G o s s m a g n r r	% 4 1 4	0 % 4 <	0 % 4 >
R & D	1 1 0 % f l o s a e s	I i n c r e a s n g b 5 1 0 % y –	d L i t o w o m - - % t e e n s f l o s a e s
S G & A	1 1 2 % f l o s a e s	I i n c r e a s n g b 1 0 % 5 y –	L % t o w e e n s - f l o s a e s
l S l T R t t t o a e g m e n e s u i m a g n r	9 % 1 7	d L i t o o m w % t e e n s	2 0 % ~

Notes

Investments ⁼

'Purchase of property, plant and equipment'

• 'Purchase of intangible assets and other assets' incl. capitalization of R&D expenses

Working Capital ⁼

• ('Total current assets'
• 'Cash and cash equivalents'
• 'Financial investment'
• 'Assets classified as held for sale') –

• ('Total current liabilities'

• Copyright © Infineon Technologies 2010. All rights r ²⁰¹¹ eserved. 'Short term debt and current maturities of long-term debt' 'Liabilities classified as held for sale') DOI (inventory days; quarter-to-date) = ('Net Inventories' / 'Cost of goods sold') * 90 DSO (days sales outstanding; quarter-to-date) = ('Trade accounts receivables (net)' / 'revenue') * 90 DPO (days payables outstanding; quarter-to-date) = ('Trade payables' / ['Cost of goods sold' + 'Purchase of property, plant and equipment']) * 90 Page 22

Infineon Consolidated Statements of Operations (IFRS) (unaudited)

	3 m t hs end d on e			12 nt hs end ed mo
in E mi llio for the r sh da pt ta uro n; e xce pe are	Se 3 0 , 11 p	Ju n 3 0 , 11	Se 3 0 , 10 p	Se 3 0 , 11 p	Se 3 0 , 10 p
Re ve nue	1, 0 3 8	1, 0 4 3	9 4 2	3, 9 9 7	3, 2 9 5
Co f g ds ld st o oo so	( ) 6 1 9	( ) 6 1 3	( ) 5 6 3	( ) 2, 3 4 3	( ) 2, 0 5 8
fit Gr o ss pr o	4 1 9	4 3 0	3 7 9	1, 6 5 4	1, 2 3 7
Re rch d d lop nt e sea an eve me xpe nse s	( 1 1 0 )	( 1 0 9 )	( 1 1 4 )	( 4 3 9 )	( 3 9 9 )
Se llin ral and ad min istr ativ g, g ene e e xpe nse s	( 1 1 9 )	( 1 1 4 )	( 1 0 3 )	( 4 4 9 )	( 3 8 6 )
Ot her tin inc op era g om e	1 0	2	7	2 3	1 8
Ot her tin op era g e xpe nse	( ) 2 1	( ) 8	( ) 1 5	( ) 5 3	( ) 1 2 2
Op ing in at er co me	1 7 9	2 0 1	1 5 4	7 3 6	3 4 8
Fin ial inc anc om e	1 2	1 3	5	3 9	2 9
Fin ial anc exp ens e	( ) 2 2	( ) 1 4	( ) 1 6	( ) 6 5	( ) 9 5
Inc e f inv ed for ing th ity tho d est nts unt om rom me ac co us e e qu me	3	( 1 )	1	4	8
Inc fr nti ing io be fo inc rat o me o m co nu o pe ns re o me tax es	1 7 2	1 9 9	1 4 4	7 1 4	2 9 0
Inc x b fit (ex se) e ta om ene pen	7 5	( 2 4 )	4 9	3 0	2 2
Inc fr nti ing rat io o me o m co nu o pe ns	2 4 7	1 7 5	1 9 3	7 4 4	3 1 2
Inc e ( los s) fro m d isc tin ued tio f in t o ta om on op era ns , ne co me xes	( 1 2 2 )	1 5	1 9 7	3 7 5	3 4 8
N inc et o me	1 2 5	1 9 0	3 9 0	1, 1 1 9	6 6 0
Att ribu tab le t o:
No llin inte tro ts n-c on g res	-	-	-	-	1
Sh AG ho lde f In fin n T hno log ies are rs o eo ec	1 2 5	1 9 0	3 9 0	1, 1 1 9	6 5 9
f In fin Ba sic rnin r sh at trib uta ble to sh ho lde ea gs pe are are rs o eo n AG Te ch log ies ( in E ): no uro
( n) – We ig hte d a har tst and ing in m illio ba sic ve rag e s es ou	1, 0 8 5	1, 0 8 7	1, 0 8 7	1, 0 8 6	1, 0 8 7
( ) fro Ba sic rnin r sh in E tin uin rat ion ea gs pe are uro m c on g o pe s	0. 2 3	0. 1 6	0. 1 8	0. 6 8	0. 2 9
Ba sic rnin r sh ( in E ) fro m d isc tin ued tio ea gs pe are uro on op era ns	( ) 0. 1 1	0. 0 1	0. 1 8	0. 3 5	0. 3 2
B ic rni sh ( in Eu ) as ea ng s p er are ro	0. 1 2	0. 1 7	0. 3 6	1. 0 3	0. 6 1
Dil d e ing har ttri but ab le t har eho lde f ute arn s p er s e a o s rs o Infi n T hno log ies AG ( in E ): neo ec uro
We ig hte d a har and ing ( in m illio n) – dil d tst ute ve rag e s es ou	1, 1 2 5	1, 1 5 7	1, 1 2 7	1, 1 9 5	1, 1 1 7
Dil d e ing har e ( in E ) fro tin uin ion ute rat arn s p er s uro m c on g o pe s	0. 2 2	0. 1 6	0. 1 6	0. 6 6	0. 2 8
Dil d e ing har e ( in E ) fro m d isc tin ued tio ute arn s p er s uro on op era ns	( 0. 1 1 )	0. 0 1	0. 1 7	0. 3 2	0. 3 0
D ilu d e nin ha ( in Eu ) te ar gs pe r s re ro	0. 1 1	0. 1 7	0. 3 3	0. 9 8	0. 5 8

Infineon Consolidated Statements of Financial Position (IFRS) (unaudited)

in Eu illion ro m	Sep 30 , 11	Ju n 3 0, 1	1 Sep 30 , 10
A s set s:
Cur rent ets: ass
Cas h an d ca sh e quiv alen ts	1,0 07	822	1,6 67
Fina ncia l inv estm ents	1,6 85	1,7 63	60
Tra de a nd o ther eiva bles rec	593	828	687
ther in: T rade ts re ceiv able acc oun s	510	584	622
Inve ries nto	507	631	514
Inco ivab le tax me rece	30	15	7
Oth nt fi cial ets er c urre nan ass	2	4	72
Oth nt a ts er c urre sse	142	101	88
Ass clas sifie d as hel d fo le ets r sa	5	4	495
T o tal t as set cur ren s	3,9 71	4,1 68	3, 590
Pro y, pl and ipm pert ant ent equ	1,3 43	1,1 85	838
Goo dwil l and oth er in tang ible ets ass	111	103	87
Inve stm ents ted for usin g th uity met hod acc oun e eq	34	31	35
Def d ta sets erre x as	262	221	308
Oth er fi cial ets nan ass	124	124	119
Oth ts er a sse	28	31	16
T o tal nt a ts no n -cu rre sse	1,9 02	1,6 95	1,4 03
T o tal ets ass	5,8 73	5,8 63	4,9 93
Lia bili ties d e qui ty: an
Cur rent liab ilitie s:
Sho rt-te rm d ebt and rent turit ies o f lon g-te rm d ebt cur ma	68	83	133
Tra de a nd o ther able pay s	735	760	665
ther in: T rade ts p bles acc oun aya		718	659
Cur rent visi pro ons	810	619	553
Inco ble tax me paya	59	113	111
Oth nt fi cial liab ilitie er c urre nan s	159	121	16
Oth nt lia bilit ies er c urre	174	315	153
Liab ilitie s cl ified held for sal ass as e	-	-	177
T o tal t lia bili ties cur ren	2,0 05	2,0 11	1,8 08
Lon rm d ebt g-te	237	256	263
Pen sion pla nd s imil mitm ents ns a ar c om	168	147	146
Def d ta x lia bilit ies erre	7	9	11
Non visi rent -cur pro ons	26	45	55
Oth er fi cial liab ilitie nan s	4	6	6
Oth er li abil ities	71	69	79
T o tal nt l iab iliti no n -cu rre es	513	532	560
T o tal liab iliti es	2, 518	2, 543	2,3 68
Sha reho lder s' e quit y:
Ord inar y sh ital are cap	2,1 73	2,1 73	2,1 73
Add ition al p aid- in ca pita l	5,8 54	5,8 75	6,0 48
Acc late d de ficit umu	( 14) 4,5 10	( 19) 4,6	( 13) 5,6
Oth er re serv es		4	17
Own sha res		-	-
Put ions sha opt on own res	( 142 )	( 113 )	-
Equ ity ribu tab le t har eho lde f In fine T ec hno lo g ies A G att o s rs o o n	55 3,3	3,3 20	25 2,6
T o tal liab iliti and uity es eq	5,8 73	5,8 63	4,9 93

Infineon Consolidated Statements of Cash Flows (IFRS) (unaudited)

3 m o nt h d ed s en
in Eu illion ro m	Sep 3 0 , 11	Jun 3 0 , 11	Sep 3 0 , 10
N et inc o m e	125	190	390
me ( ) fro Less : net inco loss m di ntinu ed o tion t of inco me t sco pera s, ne axes	122	(15)	(19 7)
Adju stm ents to r ncile net inco me t t cas h pro vide d by ratin tiviti eco o ne ope g ac es:
Dep recia tion and rtiza tion amo	98	94	85
Inco me t ax	(75)	24	(49 )
Inter est r esul t	7	4	10
Prov ision for (rec ry of ) do ubtf ul ac nts ove cou	-	(2)	-
Los (gain s) o les o f fina ncia l inve stm ents ses n sa	2	-	-
Los (gain s) o les o f bus ines and inter in s ubsi diari ests ses n sa ses es	-	(2)	-
Los in co tion with the deco lidat ion o f AL TIS ses nnec nso	-	-	(14 )
Los (gain s) o n dis ls of , pla d eq uipm perty nt an ent ses posa pro	(1)	-	-
Inco me f inve stm ents ted f sing the equi ty m etho d rom acc oun or u	(3)	1	(1)
Divid ends ived from ocia ted c anie rece ass omp s	-	5	4
Impa irme nt ch arge s	1	-	-
Sha re-ba sed atio com pens n	1	-	-
Cha in tr ade and othe eiva bles nges r rec	15	(5)	6
Cha in in vent orie nges s	6	(20)	(8)
Cha in o ther ent a sset nges curr s	(11)	1	34
Cha in tr ade and othe able nges r pay s	(1)	31	92
Cha in p rovi sion nges s	39	50	114
Cha in o ther ent l iabil ities nges curr	26	(10)	(80 )
Cha in o ther nd lia biliti ets a nges ass es	(5)	(13)	19
Inter est r ecei ved	11	6	3
Inter aid est p	(2)	(12)	(1)
Inco me t aid ax p	6	(16)	(8)
N et h pr o vi ded by rati ctiv ities fro o nt inui atio cas o pe ng a m c ng o per ns	361	311	399
N et h pr o vi ded by (us ed i n) o atin tivi ties fro m d isco ntin ued cas per g ac	135	(32 )	(12 )
rati o pe o ns N et h pr o vi ded by rati ctiv ities cas o pe ng a	496	279	387
Cas h flo ws f inve sting acti vitie rom s:
Purc hase s of fina ncia l inve stm ents	(88 7)	(550 )	-
Proc eeds from sale s of finan cial inve stm ents	962	321	2
Proc eeds from sale s of busi nd in sts i bsid iarie tere ness es a n su s	2	-	1
Purc hase s of inta ngib le as and oth sets sets er as	(13)	(11)	(8)
Purc hase s of , plan t and ipme perty nt pro equ	(26 0)	(308 )	(15 5)
Proc eeds from sale s of plan d eq uipm nd o ther erty, t an ent a ets prop ass	7	-	(1)
N et h us ed i n in ting ivit ies fro m ntin uing tio n act cas ves co o p era s	(18 9)	(54 8)	(16 1)
N et h us ed i n in ting ivit ies fro m dis tinu ed o atio act cas ves co n per ns	(33 )	(43 )	(8)
N et h us ed i n in ting act ivit ies cas ves	(22 2)	(59 1)	(16 9)
Cas h flo ws f fina ncin tiviti rom g ac es:
finan Net chan ge in rela ted p arty cial ivab les a nd p ayab les rece	-	-	2
Proc eeds from issu of n nt de bt ance on-c urre	-	2	2
Rep ents of n nt de bt aym on-c urre	(21)	(17)	(13 )
Rep urch of c ertib le su bord inate d bo nds ase onv	(50)	(16)	-
Cha in re stric ted c ash nge	1	(1)	1
Purc hase s of sha own res	(26)	-	-
Proc eeds from the issu of p ptio ns fo n sh ut o ance r ow ares	4	4	-
Divid end ents paym		- -	-
N et h us ed i n fi cing act ivit ies fro m ntin uing tio n cas nan co o p era s	(92 )	(28 )	(8)
N et h pr o vi ded by fina ncin tivi ties fro m d isco ntin ued tio n cas g ac o p era s		- -	-
n fi N et h us ed i cing act ivit ies cas nan	(92 )	(28 )	(8)
Net incre (dec e) in h an d ca sh e quiv alen ts ase reas cas	182	(340 )	210
Effe ct o f for eign hang e rat e ch h an d ca sh e quiv alen ts exc ange s on cas	3	-	5
Cas h an d ca sh e quiv alen ts at beg innin g of peri od	822	1,1 62	1,4 52
C as h an d ca sh e quiv alen d o f pe rio d ts a t en	1,00 7	822	1,6 67

Financial Calendar

D t a e * l i i d t p e m n a a e r r y	i L t o c a o n	E t v e n
* b 0 1 F 2 0 1 2 e		l Q 1 F Y 1 2 R t e s s u
* 0 8 2 0 1 2 M a r	i h M u n c	l G l i A M t n n u a e n e r a e e n g
* 0 3 2 0 2 M 1 a y		Q 2 2 l F Y 1 R t e s u s
8 2 J 2 0 1 2 u n	h M i u n c	( l k ) I F X D C i M D t t a y a p a a r e s a y
* l 3 1 J 2 0 1 2 u		l Q 3 F Y 1 2 R t e s s u
* 1 3 N 2 0 1 2 o v		l Q 4 F Y 1 2 R t e s s u

Institutional Investor Relations Contacts

Ulrich Pelzer

Corporate Vice President, Corporate Development & Investor Relations- +49 89 234-26153 ulrich.pelzer@infineon.com

Joachim BinderSenior Director, Investor Relations- +49 89 234-25649 joachim.binder@infineon.com

Aleksandar JosicManager, Investor Relations-+49 89 234-83045

aleksandar.josic@infineon.com

Holger SchmidtManager, Investor Relations-+49 89 234-22332

holger.schmidt@infineon.com

Disclaimer

This presentation was prepared as of 16 November 2011 and is current only as of that date. This presentation includes forward-looking statements and assumptions about the future of Infineon's business and the industry in which we operate. These include statements and assumptions relating to general economic conditions, future developments in the world semiconductor market, our ability to manage our costs and to achieve our 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, our continuing ability to offer commercially viable products, and our expected or projected future results.

These forward-looking statements are subject to a number of uncertainties, such as broader economic developments, including the market environment; trends in demand and prices for semiconductors generally and for our products in particular, as well as for the end-products, such as automobiles, drives, renewable energies and consumer electronics, that incorporate our products; 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 continued availability of adequate funds; any mergers, acquisitions or dispositions we may undertake; the outcome of antitrust investigations and litigation matters; and the resolution of Qimonda's insolvency proceedings; as well as the other factors mentioned in this presentation and those disclosed at other occasions.

As a result, Infineon's actual results could differ materially from those contained in or suggested by 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.