Infineon Technologies AG — Investor Presentation 2013

Jan 31, 2013

First Quarter FY 2013 Quarterly Update

Infineon Technologies AG Investor Relations

Infineon at a Glance

Market Update

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

Q1 FY 2013 revenue: EUR 851m

Low Revenue And Segment Result Due To Weak Markets

		[EUR m]	Q1 FY12	Q4 FY12	Q1 FY13
		Revenue	946	982	851
		Segment Result	141	116	44
		SR Margin	14.9%	11.8%	5.2%
[EUR m] 982		Net Income*	96	138	19
851	44	Investment	294	246	88
116		FCF from cont. operations	-234	47	-128
Q4 FY12 Q1 FY13		Gross Cash	2,337	2,235	2,081
Revenue Segment Result		Net Cash	2,068	1,940	1,768

* Net Income includes "income from discontinued operations, net of income taxes" in Q1 FY12 EUR -8m, in Q4 FY12 EUR 9m and in Q1 FY13 EUR -7m. Net Income in Q4 FY12 includes income tax benefits of EUR 52m.

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

Distributors

Infineon Holds Top Positions in All Target Markets

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

Source: IMS Research (an IHS company), July 2012.

31 Jan 2013 Copyright © Infineon Technologies AG 2013. All rights reserved. Page 6

Calendar year 2011.

August 2012.

Source: IMS Research (an IHS company),

Infineon at a Glance

Market Update

Results and Outlook

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

Source: IHS, January 2013. www.ihs.com.

Semiconductor Value Per Car Continues to Increase

Source: Strategy Analytics (SA): "Automotive Semiconductor Demand Forecast 2010 – 2019", January 2013; including semiconductor sensors. * Safety = "Safety" + "Chassis" according to SA definition.

** Body = "Body" + "Security" according to SA definition.

Growth in Motor Controls Driven by Energy Saving, Government Initiatives and Legislation

Source: IMS Research (an IHS company): "Industrial Motor Controls Sourcebook – 2012 Edition", March 2012.

Wind: Drop in the US Due to Uncertainties in PTC; Solar: Growth WW Except of EU

Source: IHS: "Global Wind Energy Market Forecast", June 2012. www.ihs.com.

Source: IMS Reserch (an IHS company): "The World Market for Photovoltaic Inverters 2012", July 2012.

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Mobile Devices are High-Growth Markets for Infineon's RPD*, Esp. Si-MEMS-Micros

Source: Strategy Analytics: "Smartphone Sales Forecast by Type: Phablets and Superphones", October 2012.

* RPD = Business unit "RF & Protection Devices"; part of PMM.

Source: Gartner: "Forecast: Devices by Operating System and User Type, Worldwide, 2012 – 2016", 4Q12 Update, December 2012.

** Including Utility Tablets, Premium Tablets and Basic Tablets.

Double-digit Growth in Payment and Government ID; SIM Card Flat

Source: IMS Research (an IHS company): "Smart Cards and Smart Card ICs – World – 2012", August 2012. µController only.

Smart card ICs Government ID & healthcare

Source: IMS Research (an IHS company): "Electronic Government & Healthcare ID Cards Market – World – 2012", August 2012. µController and memory.

Infineon at a Glance

Market Update

Results and Outlook

Lower Revenue And Segment Result Due To Market Weakness

Stable Revenues in PMM, Encouraging Development in CCS

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.

XMC1000 Completes Infineon's Portfolio of Industrial Microcontrollers

New Key Application Fields For XMC1000: Focus on Low-end Industrial Control

Guidance for Q2 FY13 and FY 2013

Outlook FY 2013* (compared to FY 2012)

Revenue

Mid single digit percentage increase. Mid-to-high single digit percentage decline.

Segment Result / Margin

Segment Result slightly up in absolute terms.

Segment Result Margin in the mid-to-high single digits.

Investments in FY 2013 About EUR 400m.

D&A in FY 2013 About EUR 470m.

* This outlook is based on an assumed Euro/US Dollar exchange rate of 1.30.

Sequential Decline in OpEx as Cost Reduction Measures Were Implemented

Working Capital Increased Mainly Due To Lower Payables

* For definition please see page 29 in appendix.

Trade and other receivables Trade and other payables 100 600 [days]

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[EUR m]

^{539 521 546 567 585}

Q1 FY12 Q2 Q3 Q4 Q1 FY13

Inventories DOI*

[days]

Investments in FY 2013 to Be Reduced Significantly

* For definition please see page 29 in appendix.

• Gross cash decreased due to negative Free Cash Flow and buyback of shares via put options. Net cash impact correspondingly lower.
• Buyback of 6m shares for EUR 38m. In addition put options for 3m shares lapsed with EUR 1m premium received.
• Net increase in short and long-term debt of EUR 18m.

Average Price Per Underlying Share Below Volume Weighted Average Price (VWAP)

Total Gross Capital Returns of EUR 558m Between 2011 And Q1 FY13

Development of Capital Employed and RoCE

* For definition please see page 29 in appendix.

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

Notes

Investments =

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

Worldwide Front-end Manufacturing Sites

Worldwide Back-end Manufacturing Sites

Investments Driven by Capacity Additions and Maintenance

Breakdown of total investments in FY12 of EUR 890m

Infineon Has a Long Track Record in Responsibility and Sustainability

Dow Jones Sustainability Index Certifications

• Infineon is member of the Dow Jones Sustainability Index since 2010.
• Infineon is currently Europe's one and only semiconductor company member in the Dow Jones Sustainability Indexes.
• Infineon is semiconductor's sector leader worldwide in two environmental criteria:
• Product stewardship,
• Operational eco-efficiency.

According to RobecoSAM, Infineon is among the top 15% most sustainable companies worldwide and therefore listed in the Sustainable Yearbook for the third consecutive year.

Based on our efforts for resources management, safety and health standards, Infineon received the EN ISO 14001, OHSAS 18001 and ISO 50001* multi-site certification.

^* ISO 50001 in EU sites.

Date	Location	Event
28 Feb 2013	Munich	Annual General Meeting
12 – 13 Mar 2013	London	UBS European Technology Conference
02 May 2013*		Q2 FY13 Results
30 Jul 2013*		Q3 FY13 Results
12 Nov 2013*		Q4 FY13 and FY 2013 Results
18 – 19 Nov 2013	London	Company Roadshow including presentation by Andreas Urschitz Division President, Power Management & Multimarket
20 – 22 Nov 2013	Barcelona	Morgan Stanley TMT Conference

* provisional

Institutional Investor Relations Contact

	Ulrich Pelzer Corporate Vice President Finance, Treasury & Investor Relations	 +49 89 234-26153  ulrich.pelzer@infineon.com
	Joachim Binder Senior Director Investor Relations	 +49 89 234-25649  joachim.binder@infineon.com
	Holger Schmidt Manager Investor Relations	 +49 89 234-22332  holger.schmidt@infineon.com
31 July 2012	Bernard Wang Manager Investor Relations Copyright © Infineon Technologies 2012. All rights reserved.	 +49 89 234-22669  bernard.wang@infineon.com Page 35