Infineon Technologies AG — Investor Presentation 2014

May 19, 2014

US Roadshow 19 – 22 May 2014

Infineon Technologies AG

Table of Contents

Infineon at a Glance

Growth Drivers

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.

Average Cycle Financial Targets

Revenue Split by Division

^2014-05-19 Copyright © Infineon Technologies AG 2014. All rights reserved. Page 4

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

Infineon Holds Top Positions in All Major Product Categories

Automotive semiconductors incl. semiconductor sensors.

Source: Strategy Analytics, April 2014.

Discrete power semiconductors and power modules.

Source: IHS, December 2013.

Microcontroller-based smart card ICs. Source: IHS, September 2013.

Table of Contents

Infineon at a Glance

Growth Drivers

Results and Outlook

Growth in Car Production and Content-per-Car Continues Unabated

Source: IHS, "Annual Light Vehicle Production and Sales 2007 – 2019", April 2014 update.

Source: Strategy Analytics, "Automotive Semiconductor Demand Forecast 2012 – 2021", incl. semiconductor sensors, May 2014.

In 2013, Infineon Gained Market Share in All Addressed Product Categories

2013 automotive semiconductor market by product category (\$25.1bn)

• "Power" and "Sensors" were the fastest growing product categories with 8% and 7% growth y-y, respectively.
• Infineon remained market leader in "Power" with 21.3% market share.
• Strong product portfolio in pressure and Hall sensors led to significant market share gain in "Sensors" of 1.0%-point.

Source: Strategy Analytics, April 2014.

* "others" include: opto, small-signal discretes, logic ICs, nonpower analog, memory, and other.

Drives, Home Appliances and Others Show Strongest Growth Rates

IPC: ~10% p.a.

Share Gains in Chips for Silicon Microphones; 785m Units Shipped in 2013

Acoustic Performance Becomes Differentiator and Enabler for New Capabilities

Strong Growth in Payment Business and also in Multiple Implementations of NFC

Strong momentum for Infineon's payment business

• Successful introduction and ramp of SLE 77-based products in 90nm technology.
• Payment business grew by > 60% yearon-year in Q2 FY14.
• Payment business remains well positioned for further growth driven by
• ongoing and accelerated roll out of China UnionPay chip cards, mainly dual-interface cards;
• conversion of US magnetic stripebased cards to EMV* cards, underway in H2 2014 / early 2015;
• general trend towards dual-interface cards (e.g. "girogo" in Germany).
• * EMV = Europay MasterCard Visa, a global standard for interoperability of chip-based cards and chip card capable point-of-sale terminals and ATMs.

Infineon's main NFC offerings on the rise

embedded SE in SIM card

• Design wins at various smartphone manufacturers for embedded Secure Element using 32-bit security controller.
• Strong presence in NFC SIM cards, especially in planned China's LTE rollout combined with mobile payment/transport.

Growth in CCS Driven by All Application Segments

High-end Mobile Communication	Payment	Government Identification	Embedded Security
Expected growth [pieces]
~30%	~15%	~15%	~20%
CCS: 6-9% p.a.

Sources: IHS, ABI Research, Infineon.

Expected Growth Broadly In Line With Historical Averages

Infineon: ~8% p.a.

Sources: IHS, Strategy Analytics, ABI Research, Infineon.

Table of Contents

Infineon at a Glance

Growth Drivers

Results and Outlook

Growth Expected to Continue in Second Half FY 2014

Good Year-on-Year Growth Achieved in All Segments

Guidance for Q3 FY14 and FY 2014

	Outlook Q3 FY14 (compared to Q2 FY14)		Outlook FY 2014 (compared to FY 2013)
Revenue	Increase between 4% and 8%.		At least 11%. (previously: "Between 7% and 11%.")
Segment Result Margin	Between 14% and 16%.		At least 14%. (previously: "Between 11% and 14%.")
Investments in FY 2014		About €650m.
D&A in FY 2014		€500m or slightly above.

Investment-to-Sales Ratio Will Drop From ~16% in the Past to ~13% in the Future

Dividend Payments Will Rise by 4 to 6 €-Cents as Early as FY14

Significant Year-on-Year Improvement in Financial Performance

		[EUR m]	Q2 FY13	Q1 FY14	Q2 FY14
		Revenue	918	984	1,051
		Segment Result	68	116	146
		SR Margin 7.4% 11.8%			13.9%
[EUR m] 1051		Net Income*	33	87	124
984 116		Investment	65	129	154
	146	FCF from cont. operations	73	30	51
Q1 FY14	Q2 FY14	Gross Cash	2,016	2,279	2,198
Revenue Segment Result		Net Cash	1,705	2,048	2,010

* Net Income includes "income/loss from discontinued operations, net of income taxes" in Q2 FY13 EUR -3m, in Q1 FY14 EUR 2m and in Q2 FY14 EUR 10m.

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

Trade receivables Trade payables

* For definition please see page 30.

Investments Peaked in FY12, D&A Still Increasing

* For definition please see page 30.

Lower Gross Cash and Net Cash Due to Dividend Payment

* The remaining outstanding convertible bonds were converted by the end of January 2014.

Increase in Gross Cash and Net Cash due to Free Cash Flow of EUR 51m more than offset by dividend payment of EUR 129m.

Lower negative effect on Net Cash due to conversion of convertible bond of EUR 38m.

Total Gross Capital Returns of EUR 851m Between FY 2011 and FY 2014

Target: 'RoCE Above WACC' Over the Cycle

* For definition please see page 30.

('Trade payables' / ['Cost of goods sold' + 'Purchase of property, plant and equipment']) * 90

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 (days of inventory; quarter-to-date) = ('Net Inventories' / 'Cost of goods sold') * 90

DPO (days payables outstanding; quarter-to-date) =

DSO (days sales outstanding; quarter-to-date) = ('Trade receivables' / 'revenue') * 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

• January 2014: Infineon is listed in the Sustainability Yearbook for the fourth 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
20 – 21 May 2014	Boston	JPMorgan Global Tech, Media and Telecom Conf.
05 Jun 2014	Zurich	DZ Bank Sustainable Technologies Conference
11 – 12 Jun 2014	Berlin	Dt. Bank German, Swiss & Austrian Conference
17 – 18 Jun 2014	London	JPMorgan Technology CEO Conference
30 Jul 2014*		Q3 FY13 Results
09 Sep 2014	Frankfurt	Commerzbank Sector Week
17 Sep 2014*		Conference Call by Jochen Hanebeck, Division President Automotive
23 Sep 2014	Munich	Baader Investment Conference
24 Sep 2014	Munich	Berenberg Bank and Goldman Sachs German Corporate Conference
19 – 20 Nov 2014	Barcelona	Morgan Stanley TMT Conference
27 Nov 2014*		Q4 FY14 and FY 2014 Results
02 – 03 Dec 2014	Scottsdale, AZ	Credit Suisse TMT Conference

* preliminary

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 33 Senior Manager +49 89 234-22669 Investor Relations bernard.wang@infineon.com