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Infineon Technologies AG

Investor Presentation Feb 20, 2011

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Investor Presentation

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Annual General Meeting Infineon Technologies AG

Peter Bauer, Chief Executive Officer Infineon Technologies AG

Munich, February 17, 2011

Infineon is in a better shape than ever before

Restructuring

Refinancing

Portfolio measures

Focus on energy efficiency, mobility and security

Turnaround – Infineon on firm foundations

  • Ambitious aims
  • We created the change ourselves
  • We brought the company into shape

Success thanks to quick and determined action

Sale of WLS: Portfolio optimization successfully completed

  • Investments necessary for becoming No. 1 in the market too high
  • Attractive purchasing price of 1.4 billion U.S. dollars
  • We created enormous value for all stakeholder

Asia most important market, especially China

  • Two-digit growth rates
  • Worldwide biggest automotive sales market in 2010
  • Chinese solar industry today bigger than the German one
  • Worldwide leading wind power companies from China

Revenue share in Asia 42 percent, further expansion of our presence

  • With revenue share in Asia front runner among all DAX companies
  • New business entity in Beijing
  • Customer focus on tight cooperation with partners on the spot
  • "Local Citizen": Even stronger integration in local structures

Fiscal year 2010 – one of the most successful

Revenue increased by more than 50 percent year-on-year to 3.3 billion euros

for Infineon

  • Net income of 660 million euros
  • Ambitious target of 15 to 20 percent return rate almost achieved
  • Dividend-paying ability established

Profitable, growing and solid company

Share price doubled

Infineon share in EUR

Feb. 11, 2010 Feb. 16, 2011

Application of funds

Organic growth – mainly expansion of manufacturing capacities

Allowing our shareholders to benefit

Considering options for acquisitions

Energy efficiency Mobility Security

Automotive

Industrial & Multimarket

Chip Card & Security

CoolMOS – Contribution to preserve the resources

  • Increasing the energy efficiency in many different applications, for example:
  • PC power supplies
  • Server
  • Solar power inverters
  • Lighting systems

Smart grids enabled by innovative semiconductors

Integration of renewable energy 1

Advanced transmission 2

Grid monitoring and control 3

Energy storage and EV-charging 4

Smart Metering and appliances 5

Efficient consumption 6

  • Enormous investments in modern fleet of trains in China, but also in Europe
  • 10 new Siemens Velaro trains for Eurostar
  • Each train with 130 Infineon IGBTs totaling up to 100,000 euros in value

Electric mobility – environmentally friendly, only realizable with semiconductors

  • Realistic alternative to cars with combustion engine
  • Electric bikes already a mass market today – with chips from Infineon
  • Infineon is party to almost every electric car project outside Japan

  • New German ID card with security technology Integrity Guard

  • Innovative approach: Not only data is encrypted, but also computing operations
  • Previously unheard-of level of security
  • Nominated for Innovation Award of German Industry

Conclusion – attractive company with the right future strategy

  • Balance sheet is healthy
  • Costs are under control
  • Business runs profitably
  • Key technologies and products for energy efficiency, mobility and security

Infineon supplies the innovation components for the world of tomorrow

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