Investor and Analyst Call

Investor and Analyst Call Peter Schiefer Division President Power Management & Multimarket (PMM)

Table of Contents Overview Growth Drivers and Market Opportunities Mobile Devices & Cellular Infrastructure Power Supplies (SMPS) & DC/DC Conversion Summary 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. Page 2

Q1 FY09 Q1 FY10 Q1 FY11 Q1 FY11 Power Management & Multimarket (PMM) at a Glance Revenue and Segment Result development Revenue split by region * [EUR m] 300 200 100 0 23% 22% 237 242 268 256 55 54 69 64 Q1 FY11 26% 25% Q2 Q3 Q4 Q1 FY12 18% 14% 222 227 40 32 Q2 30% 20% 10% 0% PMM rev [lhs] PMM SR [lhs] SR margin [rhs] Europe NAFTA Japan APAC Top customers * Based on revenues by fulfillment region from 1st half FY2012. Page 3

There are Seven Globally Defined Focus Application Segments for PMM Cellular Infrastructure Solar & Energy Storage Computing DC-DC SMPS Power Conversion and RF Applications Lighting Smart Grid & Peripherals Mobile Devices Page 4

More than 80% of Revenues Driven By Seven Major Applications Revenue split by major application segments* SMPS Mobile Devices Computing DC-DC Cellular Infrastructure Smart Grid & Peripherals Lighting Solar & Energy Storage * Expected revenue split for FY 2012. Page 5

Infineon s Market Share for Power Discretes and Modules Power discretes 2010* Power modules 2010* Infineon 9% Mitsubishi Electric 26% STMicro 8% Infineon 20% Toshiba 8% Semikron 14% Vishay 8% Fuji Electric 13% IR 7% Hitachi 3% Highlights Innovative and optimized chip process technologies. Tailored assembly and module technology. Leading-edge manufacturing, e.g. 300mm power. * Source: IMS Research Power Semiconductor Discretes & Modules, August 2011. Page 6

Market Share Gain Track Record Discrete Power MOSFETS MOSFETs 2010* Market share track record and ranking** IR 13% #5 #4 #3 Fairchild Infineon 11% 11% 8% 9% 11% Toshiba Vishay 10% 11% 2006 2008 2010 Power MOSFET Position Highlights Market share gains over the last several years expected to continue via increased bundling of power discretes with power ICs. Strong product portfolio and technology leadership is creating success in high margin markets, enabling reduction in gap to #1. * Source: IMS Research World Market for Power Semiconductor Discretes & Modules, Edition 2011, August 2011. ** Source: IMS Research World Market for Power Semiconductor Discretes & Modules, Edition 2008/2010. Page 7

Table of Contents Overview Growth Drivers and Market Opportunities Mobile Devices & Cellular Infrastructure Power Supplies (SMPS) & DC/DC Conversion Summary Page 8

Closer Look at Four Major Revenue Contributors Within PMM Cellular Infrastructure Solar & Energy Storage Computing DC-DC SMPS Power Conversion and RF Applications Lighting Smart Grid & Peripherals Mobile Devices Page 9

Smartphones and Netbooks Will Drive the Increase in Mobile Traffic Global Mobile Data Traffic Mobile Devices Key Drivers Number of mobile devices sold increases. Wider offer of consumer content by newer generation of devices. Higher traffic generation by newer devices (smartphone generates data traffic equal to 24 basic feature phones). Mobile network connection speeds increase. Page 11

Mobile Devices (Mainly Smartphones) Products Addressed markets Navigation (GPS, Glonass, Galileo, Baidu) LNA chip sets. ASM (antenna switch module) CMOS switch. ESD protection TVS diode. Microphones ASIC, MEMS. Highlights First to deliver modules for simultaneous reception of both GPS and GLONASS signals. ASM: outstanding CMOS RF technology. TVS diodes: success with superior technology and competitive cost. Page 12

Silicon MEMS Microphone Market position 2011* Market drivers Knowles Infineon Analog Devices Bosch Omron 17% 3% 2% 1% 76% Trend to multi-microphone for noise-cancellation and stereo recording in smartphones. Integration of additional functionality (e.g. digital interface). Highlights Flexible business model combining Infineon s technology know-how in MEMS and ASIC design with customer expertise in acoustics and microphone packaging. Leading edge roadmap to best-in-class SNR**, narrow sensitivity and high dynamic range for improved matching of multi-microphone and size reduction. * Source: IHS isuppli, 2011. Market shares by silicon-based units. ** SNR: Signal-to-Noise Ratio. Page 13

RF Power Amplifier for Cellular Infrastructure Market position 2011* RF Power Amplifier Freescale 53% NXP Infineon 18% 17% Sumitomo Cree 8% 2% Highlights Strong customer base (e.g. Ericsson, Huawei) Roll-out of UMTS standard in emerging countries. Upgrade to LTE standard in developed countries. * Source: ABI Research RF Power Amplifiers October 2011. Page 14

Growth Drivers for AC/DC and DC/DC Power Conversion Social networks Uploading of messages, photos, documents, audio files and videos is generating exabytes of data each year. Cloud computing Outsourcing of enterprise computing power and storage. Significant importance of energy consumption Globally, one new data center per week. Energy consumption of up to 100 MW per data center (equal to ~80,000 households). Highest efficiency of AC/DC and DC/DC power conversion is of utmost importance. Page 16

Modern Data Centers are Very Focussed on Efficiency and are Setting Benchmarks Example: Facebook's first company-owned data center in Oregon uses 38% less energy compared to their other facilities CoolMOS Power supply Courtesy of Facebook As per US Environmental Protection Agency (EPA), the carbon footprint of data centers will exceed the airline industry in 2012. Courtesy of Facebook Page 17

DC/DC SMPS Highest Efficiency in Power Architectures Through System Understanding AC/DC AC/DC and DC/DC AC PFC Primary Side PWM Synchronous Rectification OR-ing DC Highest efficiency key for today s computing applications. CoolMOS, SiC thinq! & digital Power ICs OptiMOS OptiMOS Computing applications typically range from 50 W to ~3 kw. E-fuse & DC Power Distribution Primary Side PWM Synchronous Rectification OR-ing DC PoL PoL PoL PoL OptiMOS, Driver ICs, DrMOS & Digital Power Controllers Page 18

Driver Advantages of Digital Power Management Digital power Key Features embedded CPU HV startup PWM Driver ADC The digital power platform is a firmware based solution with fully integrated digital control loops. Providing application flexibility and allows easy changes to meet rapidly changing market requirements. Fast development (time to market) as most parameters can be modified on the fly via PC software. Comprehensive and accurate control information accessible via controller s digital bus interface for advanced system power management. Increased efficiency especially during light-load condition by changing control modes. Page 19

Summary PMM is one of Infineon s fastest growing segments. Growth drivers are: the need for ever higher energy efficiency; digital power: digitally controlled AC/DC and DC/DC power conversion; bundling of power discretes and power ICs; social media, cloud computing; mobile society (connectivity). Infineon is best positioned at crucial products. Book-Bill recovery in recent months bodes well for growth in current and future quarters. Current foreign exchange trends are also helpful. Page 21

Financial Calendar Date Location Event 31 Jul 2012 * Q3 FY12 Results 29-30 Aug 2012 Frankfurt Commerzbank Sector Conference Week 26 Sep 2012 Munich Baader Investment Conference 14 Nov 2012 * Q4 FY12 Results 15-16 Nov 2012 Barcelona Morgan Stanley TMT Conference 27-28 Nov 2012 Scottsdale, AZ Credit Suisse Technology Conference * preliminary date Page 23

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 Page 24