Infineon Technologies AG — Investor Presentation 2013

Nov 12, 2013

Fourth Quarter FY 2013 Quarterly Update

Infineon Technologies AG Investor Relations

Table of Contents

Infineon at a Glance

Growth Drivers – ATV, PMM, IFX

Product to System

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

Q4 FY 2013 revenue: EUR 1,053m

^2013-11-12 Copyright © Infineon Technologies AG 2013. All rights reserved. Page 3

Q4 FY13 Segment Result Margin Excluding Non-Recurring Items Approximately 13%

	[EUR m]	Q3 FY13	Q4 FY13	FY 2013
	Revenue	1,022	1,053	3,843
	Segment Result	117	148	377
	SR Margin	11.4%	14.1%	9.8%
[EUR m] 1,053 1,022	Net Income*	77	142	272
	Investment	71	155	378
148 117	FCF from cont. operations	135	156	235
Q3 FY13 Q4 FY13	Gross Cash	2,137	2,286	2,286
Revenue Segment Result	Net Cash	1,832	1,983	1,983

* Net Income includes "income/loss from discontinued operations, net of income taxes" in Q3 FY13 -5m in Q4 FY13 3m and in FY 2013 -11m.

Tight Customer Relationships are Based on System Know-how and App Understanding

Distributors

Infineon Holds Top Positions in All Target Markets

Table of Contents

Infineon at a Glance

Growth Drivers – ATV, PMM, IFX

Product to System

Results and Outlook

Despite Europe, Global Car Production Up in 2013; Long-term Prospects Still Healthy

Source: IHS, October 2013.

Semiconductor Value-Per-Car Continues to Increase

Source: Strategy Analytics, "Automotive Semiconductor Demand Forecast 2011 – 2020", Oct. 2013; incl. semiconductor sensors.

• * Safety = "Safety" + "Chassis" according to Strategy Analytics definition.
• ** Body = "Body" + "Security" according to Strategy Analytics definition.

ATV: ICEs Still Bread-and-Butter Business; New Opportunities with HEV/EV

ATV: ~7% p.a.

Sources: IHS, Strategy Analytics (October 2013)

Higher Functionality in Mobile Devices Requires Additional Infineon Components

* Does not include headsets, which typically require an additional microphone.

PMM Aims to Outgrow Its Core Markets

7.18 7.18 Expected Growth Broadly In Line With Historical Averages

Infineon: ~ 8% p.a.

Table of Contents

Infineon at a Glance

Growth Drivers – ATV, PMM, IFX

Product to System

Results and Outlook

New Strategic Approach: "Product to System"

Integrated Engine Management Solution Based on Deep System Understanding

DC/DC Example Shows That Smart System Solution Drives Higher Content

* Estimated increase in Infineon-addressable BOM value for typical system.

DrBlade: Innovative Packaging Enables Higher Levels of System Integration

DrBlade: the revolutionary chip-embedding technology

• Design-wins for DrBlade, in combination with our digital power management ICs.

• Based on Infineon's outstanding manufacturing technology: thin wafer, galvanic electroplating, laser-drilling, die-attach by diffusion-soldering.

• Target applications: DC/DC voltage regulation for computing and telecom.

• Contains driver IC and OptiMOS™ MOSFET half-bridge.
• Small package size, low profile (0.6 mm), high power density, RoHS1) 2016 compliant.
• 1) RoHS = Restriction of Hazardous Substances.

Table of Contents

Infineon at a Glance

Growth Drivers – ATV, PMM, IFX

Product to System

Results and Outlook

Segment Result Margin in FY13: 9.8%; Remained Profitable Even in Q1 FY13

ATV Still on Peak Level; Nice Recovery in IPC; PMM Lifted by Growth Markets

Guidance for Q1 FY14 and FY 2014

	Outlook Q1 FY14		Outlook FY 2014 (compared to FY 2013)
Revenue	Between €960m and €1bn.		Increase between 7% and 11%.
Segment Result Margin	Between 8% and 10%.		Between 11% and 14%.
Investments in FY 2014		About €650m.
D&A in FY 2014		€500m or slightly above.

Opex-to-Sales-Ratio Well Within Target Range

1) Target range for SG&A: 'Low teens percentage of sales'.

2) Target range for R&D: 'Low to mid teens percentage of sales'.

DOI, DSO and DPO in Line With Our Targets

Future Investments Expected to Be About 15% of Sales

Gross Cash and Net Cash Increased Due to Positive Free Cash Flow

* Consists of convertible bond (nominal value EUR 113m; book value EUR 108m).

Increase in gross cash due to positive Free Cash Flow of EUR 156m reduced by a reduction of debt of EUR 2m. Net cash effect correspondingly higher.

Convertible bond due in May 2014.

Target: 'RoCE above WACC' over the cycle

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 receivable (net)' / 'revenue') * 90

DPO (days payables outstanding; quarter-to-date) = ('Trade payables' / ['Cost of goods sold' + 'Purchase of property, plant and equipment']) * 90

Please note:

All positions in ' ' refer to the respective accounting position and therefore should be applied with the positive or negative sign used in the relevant accounting table.

Infineon is a Long-standing Member of Europe's Leading Sustainability Indices

Infineon's most recent achievements

• February 2013: Infineon is listed in the Sustainable Yearbook for the third consecutive year and according to RobecoSAM, listed among the top 15% most sustainable companies worldwide.
• September 2013: Infineon was listed in the Dow Jones Sustainability Index for the fourth consecutive year.

October 2013: oekom research has classified Infineon as "Prime", which serves as an indicator of the quality of Infineon's performance in the

social and environmental areas.

• Infineon was added to the FTSE4Good Index Series in 2001.
• March 2013: Infineon was confirmed as member of this index for the 12th consecutive year.

Financial Calendar

Date	Location	Event
18 – 19 Nov 2013	London	Company Roadshow including presentation by Andreas Urschitz, Division President, Power Management & Multimarket
20 – 21 Nov 2013	Barcelona	Morgan Stanley TMT Conference
03 – 04 Dec 2013	Scottsdale, AZ	Credit Suisse Technology Conference
30 Jan 2014*		Q1 FY14 Results
13 Feb 2014	Munich	Annual General Meeting
29 Apr 2014*		Q2 FY14 Results
30 Jul 2014*		Q3 FY13 Results
18 Nov 2014*		Q4 FY14 and FY 2014 Results

* provisional

Institutional Investor Relations Contact

Ulrich Pelzer

Corporate Vice President +49 89 234-26153 Investor Relations

Finance, Treasury & ulrich.pelzer@infineon.com

Joachim Binder

Senior Director +49 89 234-25649 Investor Relations joachim.binder@infineon.com

Holger Schmidt

Manager +49 89 234-22332 Investor Relations holger.schmidt@infineon.com

Bernard Wang

Copyright © Infineon Technologies 2012. All rights reserved. Page 32 Manager +49 89 234-22669 Investor Relations bernard.wang@infineon.com