Infineon Technologies AG — Investor Presentation 2011

Feb 1, 2011

Company Presentation Feb. 01, 2011

Global semiconductor market development

Copyright © Infineon Technologies 2011. All rights reserved. Page 4 Source: WSTS for historical data. Forecast: of Gartner, iSuppli, IC Insights, VLSI, WSTS; market growth rates year-on-year; last forecast update January 25th 2011 01/02/2011

Infineon Group Results for FY 2010 vs FY 2009

Revenues		Net Result	in € million	2009	2010
+51%	3,295	660	Revenues	2,184	3,295
2,184			Segment Result	-140	475
			SR Margin	-6.4%	14.4%
FY09	FY10	-674 FY09 FY10	Net Result	-674	660

Free Cash Flow	274	573
Investments PPE	96	292
Net Debt/Cash	657	1,331
Market capitalization	~4,200	~5,522

Copyright © Infineon Technologies 2011. All rights reserved. Page 7 Note: Figures according to IFRS with Wireline and Wireless as discontinued operations; as of September 30, 2010 01/02/2011

Infineon Group Results for Q1 FY11 vs Q4 FY10 Segment Result Revenues Net cash Net result Free Cash Flow Gross Cash Position 236 1,727 1,331 in € million Revenues Net Result 232 942 390 922 -2% Q4 FY10 Q1 FY11 SR Margin Q4 10 942 171 18% 390 Q1 11 922 177 19% 232 4 1,669 1,293

Copyright © Infineon Technologies 2011. All rights reserved. Page 8 Note: Figures according to IFRS with Wireline and Wireless as discontinued operations; as of September 30, 2010 01/02/2011

Infineon Group Results for Q1 FY11 vs Q1 FY10 Segment Result Revenues Net cash Net result Free Cash Flow Gross Cash Position Note: Figures according to IFRS with Wireline and Wireless as discontinued operations; as of September 30, 2010 in € million Revenues Net Result ^{232 687} 65 922 +34% Q1 FY10 Q1 FY11 SR Margin Q1 10 687 70 10% 65 Q1 11 922 171 19% 232 -21 1,678 874 4 1,669 1,293

01/02/2011

Copyright © Infineon Technologies 2011. All rights reserved. Page 9

Infineon Segment Q4 FY10 and Q1
Segment Result*	(SR) in € million			SR Margin
	Q4 2010	58		17%
ATV	Q1 2011	59		17%
	Q4 2010
IMM	Q1 2011		106 107	24% 25%
CCS	Q4 2010	12		10%
	Q1 2011	10		10%
*: Total Segment Result includes Other Operating Segment (Q4 FY10 € -10 m, Q1 FY11 € -1 m).		€ 5 m, Q1 FY11 €		2 m), Corporate & Eliminations (Q4 FY10
01/02/2011	Copyright © Infineon Technologies 2011. All rights reserved.			Page 11 11

Revenue Split by Division

The Infineon Compass Guides us on Our Way

Our Purpose

We are the semiconductor innovation leader for energy efficiency, mobility and security. Our solutions help modern society to grow while preserving our environment.

Our Way

Our people are the foundation of Infineon's unique competitive advantages, strong financial results and high performance. We deliver the best to our customers, employees and shareholders - anywhere, anytime.

Our Values

Four core values are the driving force behind our day-to-day execution: we commit – we innovate – we partner – we perform.

Paving the Way for a High Performance Company

• Successful restructuring by IFX10+
• Consequent cost reduction
• Efficiency increase
• Successful refinancing in 2009
• Repurchase and redemptions of convertible and exchangeable bonds in 2009 (total: € 367 m nominal)
• New convertible bond issued 2014, gross proceeds of about € 182 m
• € 674 m capital increase, 100% subscribed
• Strict working capital management, capex discipline
• Consequent adoption of the Infineon portfolio for all target markets
• World leading in ATV, IMM and CCS
• Selling WLC to Golden Gate Capital
• Selling WLS to Intel
• Focus on the three major challenges of today's society:
  • ¬ Energy Efficiency
  • ¬ Mobility
  • ¬ Security

We Focus on Our Target Markets

Focus Areas

• Energy Efficiency
• Mobility
• Security

Core Competencies

Analog/Mixed Signal

Power

• Embedded Control
• Manufacturing Competence

Our Target Markets

• Automotive
• Industrial Electronics
• Chip Card & Security

We focus on three areas with highly attractive future perspectives

Automotive

Industrial & Multimarket

Chip Card & Security

Introducing the new focus area "Mobility" reflects:

• Our leadership position in Automotive
• Rising importance of new mobility concepts (e.g. electro mobility) and
• Innovative public transportation solutions for traction & electronic tickets

01/02/2011

Copyright © Infineon Technologies 2010. All rights reserved. Page 18

Energy Efficiency

Key trends

• Soaring total energy demand across the globe amid dwindling fossil energy resources
• Strong CO² policies to achieve climate goals
• Tapping renewable energies as sustainable energy sources
• Electrification of the drivetrain of commercial and passenger vehicles

Our contribution

• Infineon delivers semiconductor innovations playing a valuable role in minimizing power loss and maximizing power savings along the entire energy supply chain, extending from generation through distribution to actual consumption.
• Our products are the basis for intelligent and optimal use of energy resources in industrial, computing and consumer applications, and in cars.

Mobility

Key trends Rigid CO² regulations and rising oil price

• Increasing rules on safety, focusing on preventive measures
• Rising new requirements in cars for emerging markets
• Urbanization, globalization and demographic change
• Strong investments in local and long distance public transportation systems

Our contribution

• Leading semiconductor solutions contributing to a more sustainable mobility in terms of reduced fuel consumption/emissions, improved safety and affordability.
• As an innovation driver and supplier of key components for electric and hybrid vehicles, Infineon will actively help to shape the paradigm shift towards electro mobility on the road.
• Innovative public transportation solutions for traction and electronic tickets.

Security

Key trends

• Requirements for secure systems are visible in all areas of life
• Secure communication everywhere utilizing mobile phone and internet
• Move to electronic identification of documents and products
• Contactless cards for payment and electronic tickets
• Increased electronics in cars, calling for secure data handling

Our contribution

• Tailored security according to system requirements, enabling the implementation of transparent security in everyday systems
• Leverage our worldwide leadership in security know-how for smart cards in automotive and industrial applications increasingly demanding security
• Combining both hardware security and cryptography, our products build the basis for privacy and security while maintaining personal freedom and facilitating extended communication capabilities

Table of Contents
Market and 	1st Business Development Quarter Fiscal	Year 2011
Business Focus 
Divisions, Products 	and Technology
General Company 	Information
01/02/2011	Copyright © Infineon Technologies 2011. All rights reserved.	Page 23

Infineon – Market-Oriented Business Structure

Divisions Core Applications

Automotive

Powertrain (engine and transmission control); Hybrid and electric cars; Car body and comfort electronics (steering, suspension, lights, air conditioning, sunroof, power windows, windshield wipers, central body control units, door electronics); Safety (ABS, airbags, ESP)

Industrial & Multimarket

Electric drive control for industrial applications & home appliances, traction for railway and trains, modules for renewable energy generation, transmission & conversion, semiconductor components for light management systems & low-energy lamps, power supplies for servers, PCs, notebooks, netbooks, game consoles, entertainment electronics; customized components for PC peripherals (e.g. mouse), game consoles & medical engineering applications; RF and protection devices for communication (e.g. GPS, UMTS, WLAN, digital TV) and tuner systems, silicon MEMS microphones; power transistors for amplifiers in cellular base stations

Chip Card & Security

SIM card for mobile phones; payment systems; electronic passports, ID cards, healthcare cards and driver's licenses; personal identification; object identification; Pay TV;

platform security for computers and networks;

authentication and system integrity e.g. in game consoles, printers, industrial controller

Customers

Automotive Overview

Core competencies/ Value proposition

• Fully automotive commitment: More than 40 years of automotive system and application expertise
• Complete automotive system provider
• Hybrid and E-Mobility: industry leading expertise and product portfolio
• Worldwide development, production and support sites for automotive semiconductors
• Automotive Excellence: most comprehensive quality program of the industry

Product range

• Sensors: pressure, temperature, magnetic; wireless control ICs, radar
• Microcontrollers: 8-bit, 16-bit, 32-bit
• Power: MOSFETs, IGBTs, smart power ICs: voltage regulators, bridges, driver ICs, CAN / LIN / FlexRay™ transceiver, DC-DC converter, power system ICs, system-on chip embedded power ICs
• Hybrid & Electric Vehicle: HybridPACK™ Modules, Automotive Easy Modules, gate driver ICs, MOSFETs, IGBTs

Market positions

• No. 1 in Automotive semiconductors worldwide
• No. 1 in Europe
• No. 2 in NAFTA
• No. 2 in ROW

Source: Strategy Analytics (April 2010)

* FlexRay is a trademark licensed by FlexRay Consortium GbR

We Focus on Future Business Example 1: Making Cars Cleaner

Market trends

• Dwindling energy resources
• Stricter CO² emission legislations
• Growing environmental awareness

Infineon's opportunities

• Infineon components are key for CO² reduction: Total improvement of CO² -emission ~23 g/km
• We offer Hybrid and electric drivetrain products (HybridPACK™)
• No electric vehicle without semiconductors: electric drive and control, battery management, onboard battery charging and power grid communication

Note: Baseline CO² reduction in g/km: 170 g/km on Ø EU cars

Target Applications for Electric Drive Train Product Portfolio

Industrial & Multimarket Overview

Product range

• Power discretes, modules and stacks
• Power management ICs
• AF/RF diodes and transistors, RF Power
• Silicon MEMS microphone, TVS diodes
• LED drivers
• ASIC design solutions incl. secure ASICs for authentication and brand protection
• Microcontrollers: 8-bit, 16-bit, 32-bit

Core competencies/ Value proposition

• High quality products and services
• Leading edge technology and IP portfolio
• System expertise with broad application competence
• Strong worldwide presence with local sales and application support
• Dedicated account teams & distributors

Market positions

• No.1 in Power Semiconductors for seven consecutive years
• No.2 in Power Modules with 20.5% share
• No.1 in Power Discretes with 8.2% share

Source: IMS Research, July 2010

Power Components for Drive Control of Train Systems

High-speed trains Underground trains

Infineon parts

• Power: 5 to 10MW per train
• 80 to 120 IGBT modules per train

• Semiconductor content: ~EUR 100k per train

• Power: 0.5 to 1MW per train

• 25 to 50 IGBT modules per train
• Semiconductor content: ~EUR 10k per train

Copyright © Infineon Technologies 2011. All rights reserved. Page 30

Chip Card & Security Overview

Product range

• Contactless and contact-based security products for Communication, Payment, Government ID, Personal & Object ID, Entertainment and Platform Security
• Extensive packaging and service portfolio
• Innovative solutions from basic security RFID and memories to high-end security controllers (including the award winning SLE 78 family)

Core competencies/ Value proposition

• Tailored security: right level of security at the best cost-performance ratio
• Contactless excellence: focus on interoperability and dual interface
• Embedded control: right trade-off between computing power, power consumption, level of security and cost

Market positions

• No. 1 in the Chip Card IC market for 13 years with a market share of 27%¹ by revenue
• Market leader in Government ID and Payment
• Roughly every second Government ID document issued in 2009 incorporated a security chip of Infineon (without China ID)
• Supplier to Europe's biggest national ID program: the new German national ID (nPA)

We Focus on Future Business Example 3: Protecting Privacy

Market trends

• Trusted Platform Modules (TPM) on 70% of enterprise notebooks and desktops; Windows 7 support
• Data protection: Encryption of files, folders, disks, messaging, digital signatures
• Strong authentication: Network access protection and additional authentication factor

Infineon's opportunities

• No. 1 supplier for TPM solutions
• Infineon's TPM security chips are first to receive global TCG and Common Criteria Certification and UK government approval

Infineon's SLE 78 Security Controller for the New German National e-ID Card (nPA)

German national electronic ID card

• Project start in Nov 2010.
• Europe's biggest ID project.
• Currrently, about 60m e-ID card holders in Germany.
• About 6.5m ID cards are issued each year in Germany.
• Infineon is providing a signifi-cant share of the total volume.
• The new German national e-ID (nPA) is attracting significant attention ww as it is one of the most advanced approaches regarding security in ID projects.

• ~ 80% of e-ID cards in Europe contain Infineon security µC.

• nPA is the first major project for the 16-bit SLE 78 family.

• SLE 78 is based on "Integrity Guard" security technology.

Infineon – Partner of the Worldwide Electronics Industry

Infineon Semiconductor Technology Portfolio

Technology	portfolio	fits	needs of logic and	power	applications
Power/Analog	Analog Bipolar: Analog BICMOS: Smart Power :		DOPL, Ax, BIPEP, B4C B6CA, B6CA-CT, B7CA, SPT170 500 - 350nm HV-CMOS-SOI 1200-130nm BIP/CMOS/DMOS	DMOS: (OptiMOS) HV-DMOS: (CoolMOS)	KSPx, PFET (p-channel) KSNx, EH4, SFETx (n-ch.) EH5/6, EHATx, EHATDx, EHCx, EHCxD
incl. Green Robust	Smart : (SmartMOS)		SPTx (Automotive, EDP) (BCD) CMOS/DMOS, SMARTx, MSMARTx, SSMARTx Opto-TRIAC all of them adopted for automotive and industrial requirements	IGBT: Fast Recov. Diodes: SiC Devices:	IGBTx, LightMOS, ZIGBT FRSTD (ECxxx) Diode; MOS/JFET
MEMS/Sensors	Analog ICs:		B6CA, B7CA	Pressure:	BxCSP, TIREPx
	Magnetic:		Coreless Transformer BxCAS, C9FLRN_GMR	Microphone:	DSOUND
	Opto:		OP-DI, OP-TR, OP-C9N, µ-modules
CMOS	Digital CMOS: Analog/Mixed Signal: eNVM: eFlash/EEPROM:		800nm – 65nmTechnology Nodes (Platform <180nm incl. RF, AMS) 500nm – 180nm Technology Nodes (CxNA) EEPROM: IMEMR, C9FL OTP: C5OP (Automotive) 250nm – 65nm CxFL (Chip Card), CxFLA, CxFLN (Automotive)
RF/Bipolar	RF BICMOS: Bipolar IC:	NF-IC,	25GHz – 100GHz: B6HFC, B9COPT, B10C
	HiPAC:		2GHz200GHz RF-Bipolar: BxHF SiGe: B7HFM, B7HF_SLC, B7HF200 Al/Cu Integrated Passives RF Switches: C7NP, C11NP P7Mxx, P7Dxx, P8Mxx, P9Mxx
	Bipolar/Discretes/MMIC: RF-Transistors Diodes:		NF-TR; BxHF(D/M), Power Amplifier: LDMOS, LDxM, LDxIC, LD9AB NF-DI, Tuner: DxT, Schottky: DxS	RFMOS: HFM PIN: DxP	SiGe: B7HFD/M, B7HF_SD

Infineon Package Technology Portfolio
		IC				Power
Wafer Level Packages, Bare Die	Laminate based Packages	Leadframe based Packages	Chip Card	Discretes	Sensors	High Power	Power
Surface Mount Technology (SMD) Wafer Level w/o redistribution WLP  (fan-in)	SMD 1)  OCCN  BGA  LBGA xFBGA,  xFSGA	Through Hole 2)  DIP SMD 2)  PLCC  TSSOP TQFP   LQFP  MQFP Leadless  VQFN O-LQFN 1) 	Mold on LF  P-MCCx Mold  P-Mx.x Chip on Flex  FTM UV Globe top  T-Mx.x PRELAM  PPxx	SMD leaded  SOT  SOD Flat lead TSFP   SC Leadless  TSLP TSSLP   TSNP	Through Hole  PSSO SMD Leaded DSO SC TSOP Open cavity DSOF	Power Modules  Easy  62mm Econo   Econo PACK+  PrimePACK  IHM IHV   Hybrid PACK	Through Hole  TO, DIP SMD TO   DSO SSOP  Leadless TDSON  TSDSON   CanPAK SON   QFN
w/redistribution  WLB (fan-in) eWLB  (fan-out) Bare Die Wirebond Flip chip	Flip chip FCxBGA xF2BGA, xF2SGA		Flip Chip S-MFCx.x  Wafer Bumped  Diced 	Wafer level  WLP			SIP Low Power IDC  SIP Medi. Power  CIPOS
1) for specialities only	2) phase-out

01/02/2011

Copyright © Infineon Technologies 2011. All rights reserved. Page 36 36

Table of Contents
1st Market and Business Development Quarter Fiscal 	Year 2011
Business Focus 
Divisions, Products and Technology 
 General Company Information

Sustainability For Human Beings And The Environment

IMPRES*): Synergy between responsibility for humans & environment and economic success

For Infineon, responsibility and sustainability are more than just the fulfillment of legal requirements

*)Infineon Integrated Management Program for Environment, Safety and Health

Sustainability For Human Beings And The Environment

We have one of the most advanced sustainability concepts in the world

Our Occupational Safety

... accident rate is benchmark compared to the German Social Accident Insurance Institution for the Energy, Textile, Electrical and Media Products Sectors – even our accident counting method is more strict.

Our	Our
Products	Manufacturing
are enablers for energy efficient end  products and applications. are subject to an unique life-cycle analysis  approach for the optimization of the environmental footprint. are drivers of green Product development. 	 saved electricity equal to the annual consumption of a city with 1.5 Million inhabitants, (e. g. more than Munich has) or equal to one coal-fired power plant for more than 1.3 years. achieved our voluntary agreement to reduce  Kyoto-Gases (PFC) three years earlier than the global target of our industry. is considered benchmark in terms of  resources efficiency.