Commerzbank Sector Week Frankfurt, 29 August 2012

Joachim Binder Investor Relations

Infineon at a Glance

Growth Outlook

Results and Outlook

Disclaimer:

This presentation contains forward-looking statements about the business, financial condition and earnings performance of the Infineon Group.

These statements are based on assumptions and projections resting upon currently available information and present estimates. They are subject to a multitude of uncertainties and risks. Actual business development may therefore differ materially from what has been expected.

Beyond disclosure requirements stipulated by law, Infineon does not undertake any obligation to update forward-looking statements.

Revenue Split by Division

Q3 FY 2012 revenue: EUR 990m

Decreasing Segment Result Margin due to High Investment

		[EUR m]	Q3 FY11	Q2 FY12	Q3 FY12
		Revenue	1,043	986	990
		Segment Result	212	144	126
		SR Margin	20.3%	14.6%	12.7%
990 986	[EUR m] 126	Net Income*	190	111	82
		Investment	319	192	158
144		FCF from cont. operations	-8	-10	-22
Q2 FY12 Q3 FY12		Gross Cash	2,585	2,190	2,150
Revenue Segment Result		Net Cash	2,246	1,927	1,907

• Net Income includes "income from discontinued operations, net of income taxes" in Q3 FY11 EUR 15m, in Q2 FY12 EUR 2m and in Q3 FY12 EUR -8m.

Tight Customer Relationships are Based on System Knowhow and App Understanding

Distributors

Infineon Holds Top Positions in All Target Markets

Calendar Year 2011. Source: Strategy Analytics, April 2012.

Calendar Year 2011.

August 2012.

Source: IMS Research (an IHS company),

Infineon at a Glance

Growth Outlook

Results and Outlook

New Era: Multiple Factors Driving Demand for Power Semiconductors

'90 – '10

Electrification of powertrain fuels demand for high-power semis in cars and doubles silicon content.
Shift towards renewable energies requires orders of magnitude more high-power semis per MW of power generated.

Stronger demand for goods containing power semis due to faster increase in standard of

living in BRIC countries.

Despite Near-Term Outlook Cuts, Long-Term Prospect Still Healthy

Source: IHS, July 2012.

Rising Semiconductor Value Per Car Drives Market

Source: Strategy Analytics, July 2012; including semiconductor sensors.

Source: Strategy Analytics, July 2012.

Every Electricity Conversion Step Requires Infineon Components

About 10% Growth p.a. for Cycle Average Expected for Infineon

Infineon: ~10% growth p.a. cycle average

Infineon at a Glance

Growth Outlook

Results and Outlook

After Record Revenues in 2011, Sales in 2012 Are Almost Flat

All-Time-High in Revenues in ATV; Slight Recovery in PMM

Automotive: Infineon Biggest Market Share Gainer Amongst All Players in 2011

Source: Strategy Analytics, April 2012 * According to Strategy Analytics this ranking also includes Russia, South America, Australia and further countries.

London Hybrid Buses Powered by Infineon's EconoDUAL™3 and PrimePACK™ IGBT Module

London hybrid-electrical buses

Transport is responsible for ~20% of London's CO2 emission.
London has been building up a fleet of environmentally-friendly hybrid-electrical buses.
Olympic athletes and visitors are shuttled around the city.
Fuel saving of 30%; reduction in NOx of 20%.

Infineon's CoolSiC™ And SiC JFET Driver Lift Inverter Efficiency to > 99%

Infineon entering the Japanese photovoltaic market with SiC products

Japan formally implemented new feedin-tariffs for the PV industry in July 2012 as part of the new clean energy policy.
Infineon's Japanese customer built a prototype of a 10kW inverter using SiC products in Easy modules.
CoolSiC™ (SiC JFET transistors) successfully entered the market of efficiency-critical applications such as solar inverters.
In contrast to Si-based MOSFETs, SiC JFETs require dedicated control circuitry, drivers and design know-how allowing Infineon to increase value and Si-content in customer applications.

Social Networks and Cloud Computing Driving Demand for Highest Efficient Power Supplies

Infineon Supplies Security Chips to Malaysia and South Africa

MyKad is one of first multiapplication national electronic ID card projects implemented worldwide.
Multi-application cards allow implementation of numerous additional functions such as eGovernment, eDriving license, eHealth, eSignature, ePurse and transport.

Largest chip-based Government smart card project in South Africa.

Start of issuance in April 2012.

Government smart card for 10m South African recipients of social grants.
Enables South African citizens to securely receive their social grants on the chip cards.

Guidance for Q4 and FY 2012

Investments in FY 2013 Significantly lower than in FY 2012.

* This outlook is based on an assumed Euro/US Dollar exchange rate of 1.25 for Q4 FY12.

Superior Growth and Profitability Allow Sustained Investments Over the Cycle

Superior growth and profitability

Focus on secular growth drivers, e.g. renewables, e-mobility, energy efficiency.
Leading market share and competitive strengths.
Financial targets (on average over the cycle): 10% growth p. a. and
- 15% Segment Result margin.

Sustained investments for future success

Counter-cyclical investments, selling and R&D to enable further share gains.
Investments secure capacity for future growth and competitive advantage.
300mm power discretes; 200mm, quality, innovation, automation etc.

Strong returns; Value creation

RoCE well in excess of our capital cost with 27% in Q1 FY12, 25% in Q2 FY12, and 20% in Q3 FY12.
Capital returns through dividend payments, share buyback, and CB 2014 buyback.
Aggregate capital returns since Q1 FY11 amount to more than EUR 500m.

Target to Sustain 15% Cycle-Average Segment Result Margin

SR target margins Total profitability target

Infineon: ~15% operating margin cycle-average

4 Reasons for Sustainable Profitability ─ #1 High Barriers to Entry

Long product life cycles

For many markets we address, deliveries of semis need to be ensured for very long periods of time:
for car industry: 7 to 24 years;
for train industry: about 15 years.

System knowhow and understanding

Both deep and wide knowhow and understanding of our customers' applications needed for making best in class solutions:
e.g. HEV/EV needs both automotive and industrial expertise.

Strong quality and reliability req's

Products need to reliably perform well in the field over longer periods of time:
airbag reliability required as long as the car is in use;
wind turbines should function 30 years.

Semiconductors – Core Enablers of Innovation and Higher Functionality #2

Energy Efficiency Mobility Security

Power supplies

More advanced power semiconductors allow smaller, denser, lighter and more efficient power supplies.

VSD

More precise and efficient RPM-control versus mechanical transmission.

Recuperation

Implemented in trains for years; brought to cars by the advent of HEV/EVs.

Power steering

EPS is replacing hydraulicmechanical power steering allowing more flexibility in car design and less power consumption.

Identification Chip-based passports and national ID cards allow much higher level of security compared with paper-only ID cards.

Brand protection Chip-based authentication of accessories, e.g. batteries, cartridges.

Semis Represent a Negligible Part of the Value of the End Product #3

Infineon's Core Competencies ─ Power Semiconductors and eControl #4

Design and manufacturing of Core competence power power semis tightly coupled

Manufacturing

Design

Thin-wafer technology
Super-junction MOSFETs
Silicon-Carbide (SiC)
IGBT module packaging

Core competence eControl

Automotive real-time 32-bit microcontroller (TriCore™) and multi-core design (AURIX™).
Industry microcontroller with premium peripheral functions (XMC4000 family).
Low-power security controller.

OpEx In-line With Target Operating Model

Working Capital

Trade and other receivables Trade and other payables

* For definition please see page 36 in appendix.

** Comparable historical figures not available.

Investments Remain High to Exploit Growth Potential

^* For definition please see page 36 in appendix.

* Consists of convertible bond (nominal value EUR 118m; book value EUR 103m).

Gross cash decreased due to negative Free Cash Flow and debt reduction of EUR 20m. Net cash impact correspondingly lower.
Bought back another EUR 5m nominal of convertible bond for EUR 12m.
No buyback of shares during the quarter. But put options for 9.6m shares lapsed with EUR 3.6m premium received.

Value Creation of Infineon by Sustainably High RoCE Above WACC

**Capital Employed* history**

* For definition please see page 36 in appendix.

Average Price Per Underlying Share Below Volume Weighted Average Share Price

Notes

Investments =

'Purchase of property, plant and equipment'

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

Capital Employed =

'Total assets'

'Cash and cash equivalents'
'Financial investments'
'Assets classified as held for sale'
['Total Current liabilities'
'Short-term debt and current maturities of long-term debt'
'Liabilities classified as held for sale']

RoCE =

NOPAT / Capital Employed =
('Income from continuing operations'
'financial income'
'financial expense')
/ Capital Employed

Working Capital =

('Total current assets'

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

Infineon Has a Long Track Record in Responsibility and Sustainability

UN Global Compact Initiative

As one of the first semiconductor companies worldwide, Infineon joined the Global Compact Initiative of the United Nations in 2004.

Dow Jones Sustainability Index

Infineon is currently Europe's one and only semiconductor company member in the Dow Jones Sustainability Indexes.

Based on our efforts for resources management, safety and health standards, Infineon received the EN ISO 14001 and OHSAS 18001 multi-site certification.

Date	Location	Event
26 Sep 2012	Munich	Baader Investment Conference
14 Nov 2012*		Q4 FY12 Results
15-16 Nov 2012	Barcelona	Morgan Stanley TMT Conference
20 – 21 Nov 2012	London	Company Roadshow including presentation by Dr. Helmut Gassel Division President, Industrial Power Control (IPC)
27-28 Nov 2012	Scottsdale, AZ	Credit Suisse Technology Conference

* provisional

Institutional Investor Relations Contact

	Ulrich Pelzer Corporate Vice President Finance, Treasury & Investor Relations	 +49 89 234-26153  [email protected]
	Joachim Binder Senior Director Investor Relations	 +49 89 234-25649  [email protected]
	Holger Schmidt Manager Investor Relations	 +49 89 234-22332  [email protected]
31 July 2012	Bernard Wang Manager Investor Relations Copyright © Infineon Technologies 2012. All rights reserved.	 +49 89 234-22669  [email protected] Page 39

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Infineon Technologies AG

222_ip_2012-08-29_a6a0780e-138f-4435-9851-e2fdf2cb9a0c.pdf

Commerzbank Sector Week Frankfurt, 29 August 2012

Disclaimer:

Revenue Split by Division

Q3 FY 2012 revenue: EUR 990m

Decreasing Segment Result Margin due to High Investment

Tight Customer Relationships are Based on System Knowhow and App Understanding

Infineon Holds Top Positions in All Target Markets

New Era: Multiple Factors Driving Demand for Power Semiconductors

'90 – '10

Despite Near-Term Outlook Cuts, Long-Term Prospect Still Healthy

Rising Semiconductor Value Per Car Drives Market

Every Electricity Conversion Step Requires Infineon Components

About 10% Growth p.a. for Cycle Average Expected for Infineon

Infineon: ~10% growth p.a. cycle average

After Record Revenues in 2011, Sales in 2012 Are Almost Flat

All-Time-High in Revenues in ATV; Slight Recovery in PMM

Automotive: Infineon Biggest Market Share Gainer Amongst All Players in 2011

London Hybrid Buses Powered by Infineon's EconoDUAL™3 and PrimePACK™ IGBT Module

London hybrid-electrical buses

Infineon's CoolSiC™ And SiC JFET Driver Lift Inverter Efficiency to > 99%

Infineon entering the Japanese photovoltaic market with SiC products

Infineon Supplies Security Chips to Malaysia and South Africa

Guidance for Q4 and FY 2012

Investments in FY 2013 Significantly lower than in FY 2012.

Superior Growth and Profitability Allow Sustained Investments Over the Cycle

Superior growth and profitability

Sustained investments for future success

Strong returns; Value creation

Target to Sustain 15% Cycle-Average Segment Result Margin

Infineon: ~15% operating margin cycle-average

4 Reasons for Sustainable Profitability ─ #1 High Barriers to Entry

Long product life cycles

System knowhow and understanding

Strong quality and reliability req's

Semiconductors – Core Enablers of Innovation and Higher Functionality #2

Energy Efficiency Mobility Security

Power supplies

VSD

Recuperation

Power steering

Semis Represent a Negligible Part of the Value of the End Product #3

Infineon's Core Competencies ─ Power Semiconductors and eControl #4

Design and manufacturing of Core competence power power semis tightly coupled

Manufacturing

Design

Core competence eControl

OpEx In-line With Target Operating Model

Working Capital

Investments Remain High to Exploit Growth Potential

Value Creation of Infineon by Sustainably High RoCE Above WACC

Capital Employed* history

Average Price Per Underlying Share Below Volume Weighted Average Share Price

Investments =

Capital Employed =

RoCE =

Working Capital =

Infineon Has a Long Track Record in Responsibility and Sustainability

UN Global Compact Initiative

Dow Jones Sustainability Index

* provisional

Institutional Investor Relations Contact

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**Capital Employed* history**