Annual General Meeting of Infineon Technologies AG Dominik Asam Chief Financial Officer Munich, February 12, 2015 Infineon Group Key Figures FY 2013 vs. FY 2014 [in € million] [in € million] +12% 3,843 FY 2014 3,843 4,320 34.4% 38.1% Segment Result 377 620 Income from Discontinued Operations -11 47 Income from Continuing Operations 283 488 Net Income 272 535 €0.25 €0.48 Revenue Gross Margin 4,320 +64% 620 377 9.8% 14.4% Segment Result Revenue As % of revenue FY 2013 FY 2013 FY 2014 Earnings per Share* * basic Revenue Performance in FY 1999 to 2014 Compared to Performance of Global Semiconductor Market [in € million] 4500 CAGR1(99-14): ~ +9% CAGR1(99-14): +4.4% 3000 1,200 2 126,895 0 4,303 241,561 1500 1999 2002 2004 2006 2008 2010 2012 Infineon revenue with current portfolio (excluding other operating segments and corporate functions), w/o International Rectifier Global semiconductor market (adjusted to Infineon's fiscal year) 1 CAGR: Compound Annual Growth Rate 2 In the case of small product groups, the revenue for the 1999 fiscal year was derived from the data for the 2000 fiscal year on the basis of market performance Source: Infineon; WSTS, November 2014 2014 Higher Revenue in All Four Segments: Revenue and Segment Result FY 2013 vs. FY 2014 Revenue [in € million] 2013 2014 1,714 1,965 Segment Result [in € million] Revenue [in € million] 2013 167 259 2013 2014 987 1,061 38 783 2014 Automotive Revenue [in € million] 651 Segment Result [in € million] 144 Industrial Power Control Segment Result [in € million] 144 172 Power Management & Multimarket Revenue [in € million] 2013 2014 Segment Result [in € million] 463 494 Chip Card & Security 39 43 Revenue by Regions FY 2013 vs. FY 2014 Revenue [in € million] 1,567 1,707 Europe, Middle East,… 795 859 … of which GER 11% Japan 489 484 FY 2014 19% 20% 227 284 Americas Europe except Germany, Middle East, Africa 7% 710 868 … of which China FY 2013 Americas 1,560 1,845 Asia-Pacific, (w/o Japan) Japan Revenue Share FY 2014 43% Asia-Pacific (w/o Japan) Germany Operational Expenses FY 2013 vs. FY 2014 R&D Expenses [in € million] Selling, General and Administrative Expenses [in € million] 525 550 13.7% 12.7% 11.4% 11.5% FY 2013 FY 2014 FY 2013 FY 2014 As % of revenue 440 496 Long-Term Trend for Revenue and Segment Result [in € million] [Segment Result in %] 5,000 5.000 4,500 4.500 4,000 4.000 3,500 3.500 3,000 3.000 2,500 2.500 2,000 2.000 1,500 1.500 1,000 1.000 500 500 4,320 3,997 3,295 3,904 3,843 19.7% 13.5% 786 475 20% 14.4% Average margin across the cycle 14.4% 14.4% 527 25% 15% 10% 9.8% 620 377 05% 00% FY 2010 FY 2011 Revenue FY 2012 Segment result FY 2013 Margin FY 2014 Margin across the cycle Free Cash Flow FY 2012, FY 2013 and FY 2014 [in € million] 317 [in € million] 235 Investment in Property, Plant and Equipment 0 Investment in Intangible Assets -219 Free Cash Flow FY 2012 FY 2013 FY 2014 FY 2012 FY 2013 FY 2014 832 315 567 58 63 101 Return on Capital Employed After Tax [in € million] , 3.000 [RoCE in %] 25% 22.3% 2,452 , 2.500 2.000 , 2,159 2,035 20.3% 15% 1.500 , 14.1% 10% 1.000 , 500 20% 454 497 304 0 05% 00% FY 2012 Capital Employed FY 2013 1 NOPAT 1 Capital employed: long-term capital comprising own capital and long-term debt 2 NOPAT: Net Operating Profit After Taxes FY 2014 2 RoCE in % Infineon Group Key Figures FY 2013 vs. FY 2014 [in € million] +13% 2,232 1,983 [in € million] FY 2013 FY 2014 Gross Cash Position Net Cash Position 2,286 1,983 2,418 2,232 Non-Current Assets 2,282 2,504 Long-Term Debt 535 677 Provisions 721 660 356 312 3,776 5,905 4,158 6,438 Of Which: Related to Qimonda Insolvency Net Cash Position FY 2013 FY 2014 Equity Total Assets Outlook for Q2 and FY 2015 Outlook Q2 FY 2015 Outlook FY 2015 (compared to Q1 FY 2015) (compared to FY 2014) Revenue Revenue Growth of Between 5% and 9% Revenue Growth of 12% +/- 2 Percentage Points Segment Result Margin Between 12% and 13% Between 14% and 15% Performance of Infineon Shares (10/2013 – 01/2015) Compared to DAX and SOX 150% 140% 34% 33% 130% 23% 120% 110% 100% 90% 80% dd.10.yyyy Q1 2014 dd.01.yyyy Q2 2014 Share price performance in percent between Oct. 1, 2013 and Jan. 30, 2015 dd.04.yyyy DAX Q3 2014dd.07.yyyy Q4 2014dd.10.yyyy IFX Share Price SOX dd.01.yyyy Q1 2015 Oct. 1, 2013 to Jan. 30, 2015 Share Buyback History Via Convertible Bonds and Put Options (Number of shares in millions) [Euro] 11.0 11,0 10.5 10,5 10.0 10,0 9.5 9,5 9.0 9,0 8.5 8,5 8.0 8,0 7.5 7,5 7.0 7,0 6.5 6,5 6.0 6,0 5,5 5.5 5,0 5.0 4,5 4.5 15 14 13 12 11 10 9 8 7 6.90 6 5 6.02 4 3 2 1 0 Q1 FY 11 Q2 Q3 Q4 Q1 FY 12 Q2 Number of options exercised Number of shares underlying the convertible Average repurchase price Volume-weighted average price Share price Q3 Q4 Q1 FY 13 Q2 Q3 Q4 Q1 FY 14 Q2 Q3 Number of bought-back underlying shares: 53.6 million Net difference to volume-weighted average price: 0.88 euros Q4 Q1 FY 15 Comparison of Key Figures for Infineon and International Rectifier Revenue1 and Segment Result2 [in million EUR] Owing to synergy effects, we expect that International Rectifier's margin will reach Infineon's margin target in FY 2017 4,320 14.4% 620 832 8.4% 70 egment IFX Umsatz IFX SIFX IFX Result Revenue Segment Result IRF IRF IRF Umsatz IRF Segment Revenue Segment Result Result Infineon reiterates its margin target of 15 percent across the cycle Segment Result Margin 1 IFX FY14: IRF revenue Oct. 2013 to Sept. 2014, assuming an exchange rate of $1.35/€1.00 (not audited) 2 IFX FY14: IRF segment result based on non-GAAP operating income, adjusted for non-recurring effects, not adjusted for share-based compensation (not audited)