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Infineon Technologies AG

Investor Presentation Jul 28, 2011

222_ip_2011-07-28_f78402a6-d47c-4597-be8a-7cb09a5375af.pdf

Investor Presentation

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Third Quarter FY 2011Quarterly Update

Infineon Technologies AGInvestor Relations

Infineon Results and Outlook

Business Highlights

Another Quarter of Strong Financial Performance

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* Net Income FY 2010 includes a book gain of EUR 93m from the sale of WLC to Lantiq. Net Income Q2 FY11 includes a book gain of EUR 378m from the sale of WLS to Intel Mobile Communications.

Segment Result Margin Maintained atHigh Level

Revenue and Segment Result[EUR m]885942 922 994 1043 +18%138 171 177 202 212 Q3 FY10 Q4 Q1 FY11 Q2 Q3 Revenue Segment Result Segment Result margin16%18% 19% 20% 20%

Strong Revenue Growth With High Margins in ATV and IMM

Investments Rise Significantly toExploit Growth Potential

1) Investments =

'Purchase of property, plant and equipment' + 'Purchase of intangible assets, and other assets' incl. capitalization of R&D expenses.

High Gross Cash and Net Cash Position Maintained

*Consists of Convertible Bond 2014 (nominal value EUR 156m; book value EUR 127m).

  • Gross and net cash decreased slightly.
  • Repurchases of CB 2014 of EUR 16m cash (nominal EUR 4m) equivalent to roughly 2m underlying shares.

Guidance for Q4 and FY 2011

Outlook Q4 FY11(compared to Q3 FY11)

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Infineon Results and Outlook

Business Highlights

Infineon Holds Top Positions in All Target Markets

Source:Strategy Analytics, April 2011.

Copyright © Infineon Technologies 2010. All rights r 2011 eserved. Page 10

IMS Research, July 2010.

IMS Research, July 2011.

Revenue Split by Division

9-months FY11 revenue split

Expanding 200mm Capacity in Kulim; Driving 300mm Thin Wafer in Dresden

Kulim 2

In order to fully exploit Infineon's growth potential, Infineon will expand the cost-efficient 200mm manufacturing site in Kulim, Malaysia.

Dresden 300mm

Infineon will further extend its technology leadership by driving 300mm thin wafer manufacturing of power semiconductors out of the newlyacquired facility in Dresden.

New Era: Multiple Factors Driving Demand for Power Semiconductors

Automotive Segment (ATV)

Revenue and Segment Result

  • Revenue increased 5% quarter-on-quarter to an all-time-high; segment result margin up again to 20%.
  • HybridPACK™2 power module passed qualification and is now ready for volume production. Several Tier-1s already use the module in their inverter designs.
  • AURIX™, TriCore™-based 65nm microcontroller: Second very large design-win for powertrain applications with a leading European Automotive Tier-1.

ICEs Still Bread-and-Butter Business;New Opportunities in HEV/EV Vehicle production Semi content HEV / EVClassical car market Electromobility~5% p.a. 3-4% p.a. > 25% p.a.8-9% p.a.ATV: ~10% p.a. 2%-pt p.a.small units but high growthCourtesy: Bosch Courtesy: TeslaTAM: TAM: TAM: TAM:

Sources: CSM, Strategy Analytics (May 2011). TAM = total addressable market.

eMobility Requires a New Dimension of Power Semiconductor Performance

Power demand for ICE

Power demand for eMobility

ICE = internal combustion engine.

HEV = hybrid electric vehicle.

Industrial & Multimarket Segment (IMM)

Revenue and Segment Result

Strong demand for power and non-power products.

  • High demand for variable speed drives. Regulation for energy reduction for electrical drives in USA and Canada in place. In Europe similar rules expected to be effective by 2015.
  • Strong demand for gaming products.

Power Supplies, VSD are Main Businesses; Renewables and DPM are Growth Drivers

IMM: > 10% p.a.

Sources: EPIA 2011, Gartner 2010, IMS Research 2010, UNIFE 2010, Yole 2010, Infineon 2011. DPM = digital power managementTAM = total addressable market

Copyright © Infineon Technologies 2011. All rights reserved. Page 18

Chip Card & Security Segment (CCS)

Revenue and Segment Result

  • Ramp-up of 90nm continued. Almost 30% of unit production on 90nm.
  • Approval of SOLID FLASH™ technology by Mastercard for payment applications.
  • NFC sales doubled to about 5% of CCS revenues.
  • Q4: Shipments of NFC-enabled SIM cards to one more mobile phone operator to start.

Strong Growth in New Businesses Allows Us to Grow Above Market

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Sources: IMS Research 2011, Infineon 2011.TAM = total addressable market

Infineon's TPM Integral Part of the Security Architecture of Google Chromebooks

  • Infineon is shipping Trusted Platform Module (TPM) chips for devices running Google's Chrome-based operating system.
  • Infineon is the first supplier of TPM chips suited for integration.
  • One example of the newly available mobile platforms for web-based applications using Infineon's TPM is the Samsung Series 5 Chromebook.

Infineon Consolidated Statements of Operations (IFRS) (unaudited)

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

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

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(rec
ry of
) do
ubtf
ul a
unts
ove
cco
(2) 3 1
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
- - (4)
(gain
s) o
Los
n dis
als o
f pro
perty
, pla
nt an
d eq
uipm
ent
ses
pos
- - (1)
Inco
me f
inve
stm
ents
ted f
sing
the
equi
ty m
etho
d
rom
acc
oun
or u
1 (2) (4)
Divid
ends
ived
from
ocia
ted c
anie
rece
ass
omp
s
5 - 3
Impa
irme
nt ch
arge
s
- (3) 5
Sha
re-b
ased
atio
com
pens
n
- 1 -
Cha
in o
ting
d lia
biliti
ts an
nges
pera
asse
es:
Tra
de a
nd o
ther
ivab
les
rece
(5) (72
)
(82
)
Inve
ies
ntor
(20
)
13 (18
)
Oth
rrent
ets
er cu
ass
1 2 (3)
Tra
de a
nd o
ther
able
pay
s
31 13 83
Pro
visio
ns
50 20 (46
)
Oth
liab
ilitie
rrent
er cu
s
(10
)
(39
)
142
Oth
and
liab
ilitie
sets
er as
s
(13
)
(21
)
(6)
Inte
ived
rest
rece
6 6 5
Inte
rest
paid
(12
)
- (25
)
Inco
me t
aid
ax p
(16
)
(22
)
(8)
N et
h pr
o vi
ded
by
rati
ctiv
itie
s fr
ntin
uing
tio n
cas
o pe
ng a
o m
co
o p
era
s
311 177 251
o vi
(us
ed i
n) o
atin
tivi
ties
fro
isco
ntin
N et
h pr
ded
by
m d
ued
cas
per
g ac
(32
)
84 (11
)
rati
o pe
o ns
o vi
rati
ctiv
itie
N et
h pr
ded
by
cas
o pe
ng a
s
279 261 240
Cas
h flo
ws f
inve
sting
act
ivitie
rom
s:
Purc
hase
s of
fina
ncia
l inv
estm
ents
(55
0)
(1,4
68)
-
Proc
eeds
from
sale
s of
fina
ncia
l inv
estm
ents
321 - 376
Purc
hase
s of
inta
ngib
le as
and
oth
sets
sets
er as
(11
)
(9) (9)
Purc
hase
s of
, pla
d eq
uipm
perty
nt an
ent
pro
(30
8)
(15
5)
(72
)
from
s of
Proc
eeds
sale
perty
, pla
nt a
nd e
quip
t and
oth
sets
pro
men
er as
-
-
3
N et
h pr
o vi
ded
by
(us
ed i
n) i
stin
tivi
ties
fro
o nt
inui
atio
cas
nve
g ac
m c
ng o
per
ns
(54
8)
(1,6
32)
298
N et
h pr
o vi
ded
by
(us
ed i
n) i
stin
tivi
ties
fro
m d
isco
ntin
ued
cas
nve
g ac
(43
)
1,0
77
(35
)
rati
o pe
o ns
N et
h pr
o vi
ded
by
(us
ed i
n) i
stin
tivi
ties
cas
nve
g ac
(59
1)
(55
5)
263
Cas
h flo
ws f
fina
ncin
tiviti
rom
g ac
es:
Net
chan
ge in
sho
rt-te
rm d
ebt
- (8)
Proc
eeds
from
issu
of lo
ng-t
deb
t
ance
erm
2 - 2
Rep
ents
of lo
ng-t
deb
t
aym
erm
(17
)
-
(16
)
(264
)
Rep
urch
of c
ertib
le su
bord
inate
d no
tes
ase
onv
(16
)
(27
)
(3)
Cha
in re
stric
ted c
ash
nge
(1) (1)
Proc
eeds
from
the
issu
of p
ut o
ptio
ns fo
n sh
ance
r ow
ares
4 -
Divid
end
ents
- -
paym
h us
ed i
n fi
ivit
ies
ntin
act
-
(28
)
(10
9)
(15
2)
-
(27
N et
cing
fro m
uing
tio n
cas
nan
co
o p
era
s
tivi
1 4)
N et
h pr
o vi
ded
by
fina
ncin
ties
fro
m d
isco
ntin
ued
tio n
cas
g ac
o p
era
s
- -
N et
h us
ed i
n fi
cing
act
ivit
ies
cas
nan
(28
)
(15
1)
(27
4)
Net
incre
(dec
e) in
h an
d ca
sh e
quiv
alen
ts
ase
reas
cas
(34
0)
(44
5)
229
Effe
f for
eign
hang
e ch
h an
d ca
sh e
quiv
alen
ct o
e rat
ts
exc
ange
s on
cas
- (3) (5)
Cas
h an
d ca
sh e
quiv
alen
beg
innin
g of
iod
ts at
per
1,16
2
1,6
10
1,2
28
C as
h an
d ca
sh e
quiv
alen
ts a
t en
d o
f pe
rio d
822 1,1
62
1,4
52

Financial Calendar

  • 31 Aug 2011, Frankfurt Commerzbank TMT Sector Conference Week
  • 07 Sep 2011, London Deutsche Bank European TMT Conference
  • 13-15 Sep 2011, Las Vegas Deutsche Bank Technology Conference
  • 28 Sep 2011, Munich UniCredit German Investment Conference
  • 16 Nov 2011* Q4 FY11 Results
  • 17-18 Nov 2011, Barcelona Morgan Stanley TMT Conference
  • 8 Mar 2012*, Munich Annual General Meeting 2012

* preliminary date

Institutional Investor Relations Contacts

Ulrich Pelzer

Corporate Vice President, Corporate Development & Investor Relations- +49 89 234-26153 [email protected]

Joachim BinderSenior Director, Investor Relations- +49 89 234-25649

[email protected]

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

[email protected]

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

[email protected]

Disclaimer

This presentation was prepared as of 28 July 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.

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