- Q4 FY 2020: REVENUE OF €2,490 MILLION; SEGMENT RESULT €379 MILLION; SEGMENT RESULT MARGIN 15.2 PERCENT

- FY 2020: REVENUE OF €8,567 MILLION, UP 7 PERCENT YEAR-ON-YEAR; SEGMENT RESULT €1,170 MILLION; SEGMENT RESULT MARGIN 13.7 PERCENT, ORGANIC FREE CASH FLOW €911 MILLION

- OUTLOOK FOR Q1 FY 2021: BASED ON AN ASSUMED EXCHANGE RATE OF US$ 1.15 TO THE EURO, REVENUE BETWEEN €2.4 BILLION AND €2.7 BILLION PREDICTED. AT THE MID-POINT OF THE GUIDED REVENUE RANGE, SEGMENT RESULT MARGIN EXPECTED TO COME IN AT AROUND 16 PERCENT

- OUTLOOK FOR FY 2021: BASED ON AN ASSUMED EXCHANGE RATE OF US$ 1.15 TO THE EURO, REVENUE OF AROUND €10.5 BILLION (PLUS OR MINUS 5 PERCENT) EXPECTED. AT THE MID-POINT OF THE GUIDED REVENUE RANGE, SEGMENT RESULT MARGIN EXPECTED TO COME IN AT AROUND 16.5 PERCENT. INVESTMENTS BETWEEN €1.4 AND 1.5 BILLION ARE PLANNED. FREE CASH FLOW IS EXPECTED TO EXCEED €700 MILLION

- PROPOSED DIVIDEND FOR FY 2020: €0.22 PER SHARE (FY 2019: €0.27); REDUCTION DUE TO IMPACT OF CORONA PANDEMIC AND ONGOING RISKS

Neubiberg, Germany, 9 November 2020 - Today, Infineon Technologies AG is reporting results for the fourth quarter and for the full 2020 fiscal year, both ended on 30 September 2020.

"Infineon has successfully completed an exceptional and difficult fiscal year with a very respectable fourth quarter. We have proven that our company has a robust business model and continues to develop steadily, even in uncertain times," said Dr. Reinhard Ploss, CEO of Infineon. "Some of our target markets, especially the automotive sector, have recovered better than expected since the summer. In addition, the structural transformation towards electro mobility is accelerating, particularly in Europe. Other markets are showing weakness, like traction or government identification, or are still a long way from recovery, such as factory automation. All in all, we are cautiously optimistic for the fiscal year that has just begun. However, the coronavirus pandemic, the geopolitical situation and prevailing macroeconomic conditions all remain challenging. The combination of a strengthened team and a broader technology and product portfolio - especially through connectivity for the IoT and other digital applications - enables us to address an even greater number of markets. We are in an excellent position to master future challenges."

¹ The calculation for earnings per share and for adjusted earnings per share is based on unrounded figures.

² The reconciliation of net income to adjusted net income and adjusted earnings per share as well as of cost of goods sold to adjusted cost of goods sold and adjusted gross margin can be found in the quarterly information at www.infineon.com.

With effect from the beginning of the 2020 fiscal year, Infineon began is applying IFRS 16 (Leases) using the modified retrospective approach. In addition, Cypress Semiconductor Corporation has been fully consolidated since 16 April 2020. For theise reasons, comparability with prior-year periods is restricted.

GROUP PERFORMANCE IN THE FOURTH QUARTER OF THE 2020 FISCAL YEAR
Revenue for the three-month period increased from €2,174 million to €2,490 million quarter-on-quarter. For the first time, the figure includes a full quarter's contribution from Cypress Semiconductor Corporation, which Infineon acquired in April. The Automotive (ATV) and Power & Sensor Systems (PSS) segments were the main contributors to the 15 percent quarter-on-quarter growth in Group revenue. Revenue in the Connected Secure Systems (CSS) segment also increased slightly. The Industrial Power Control (IPC) segment recorded lower revenue than in the preceding three-month period.

Infineon's gross margin improved from 27.0 percent in the third quarter to 31.8 percent in the fourth. The adjusted gross margin rose from 35.9 percent to 36.6 percent quarter-on-quarter. The Segment Result improved from €220 million in the third quarter to €379 million in the final quarter of the fiscal year, with the Segment Result Margin rising significantly from 10.1 percent to 15.2 percent.

The non-segment result for the fourth quarter was a net loss of €197 million, compared to a net loss of €313 million in the previous three-month period. The negative effects from the acquisition and consolidation of Cypress, which are primarily related to the purchase price allocation, were lower than in the third quarter. The non-segment result for the fourth quarter contained €118 million of cost of goods sold, €68 million of selling, general and administrative expenses and €11 million of research and development expenses. Net other operating income and expenses amounting to €0 million were also recorded in the fourth quarter.

Operating income increased to €182 million in the fourth quarter, compared to an operating loss of €93 million in the previous three-month period.

The financial result improved to a negative amount of €28 million in the last three months of the fiscal year compared with negative €79 million in the third quarter, which had included one-off expenses relating to the financings incurred for the acquisition of Cypress.

The tax expense amounted to €33 million for the fourth quarter. The purchase price allocation undertaken in connection with the first-time consolidation of Cypress and the related reversal of deferred tax liabilities had given rise to tax income of €44 million in the third quarter.

Income from continuing operations increased to €112 million in the fourth quarter, compared to a loss of €128 million in the third quarter. The loss from discontinued operations amounted to €3 million in the fourth quarter, compared to nil for the previous three-month period. Net income totaled €109 million in the fourth quarter, compared to a net loss of €128 million in the third quarter.

Earnings per share from continuing operations for the fourth quarter of the 2020 fiscal year amounted to €0.08 (basic and diluted), compared to a negative amount of €0.11 for the previous quarter. Adjusted earnings per share³ (diluted) also improved, amounting to €0.20 for the three-month period, compared to €0.13 one quarter earlier.

Investments - which Infineon defines as the sum of purchases of property, plant and equipment, purchases of other intangible assets and capitalized development costs - increased to €332 million in the fourth quarter of the 2020 fiscal year, compared with €266 million in the preceding three-month period. At €379 million, depreciation and amortization remained practically unchanged compared to the €381 million recorded one quarter earlier.

Free cash flow turned around to a positive amount of €387 million in the fourth quarter, excluding cash outflows in connection with the Cypress acquisition free cash flow would have amounted to positive €431 million. The figure for the previous three-month period was a negative amount of €7,137 million, due to the acquisition of Cypress. Excluding cash outflows used in connection with the acquisition of Cypress and adjusted for acquired cash, the third-quarter figure would have been a positive amount of €439 million. Net cash provided by operating activities from continuing operations increased from €533 million in the third quarter to €747 million in the fourth quarter.

At the end of the 2020 fiscal year, the gross cash position amounted to €3,227 million, compared to €3,450 million at 30 June 2020. The main reason for the lower figure, despite the positive free cash flow, was the early partial repayment of borrowings amounting to €476 million taken out in connection with the acquisition of Cypress. The net cash position^{amounted to a negative amount of €3,806 million, as compared with negative €4,296 million three months earlier. Financial debt amounted to €7,033 million as of 30 September 2020, compared with €7,746 million at the end of the third quarter.}

OUTLOOK FOR FIRST QUARTER OF 2021 FISCAL YEAR
Based on an assumed exchange rate of US$ 1.15 to the euro, Infineon expects to generate revenue between €2.4 and 2.7 billion in the first quarter of the 2021 fiscal year. ATV segment revenue is forecast to increase by a mid-double-digit million euro amount quarter-on-quarter. Revenue generated by the IPC, PSS and CSS segments is in each case expected to remain at a similar level to the previous quarter. At the mid-point of the guided revenue range, the Segment Result Margin is expected to come in at about 16 percent.

OUTLOOK FOR THE 2021 FISCAL YEAR
Based on an assumed exchange rate of US$ 1.15 to the euro, Infineon expects to generate revenue of around €10.5 billion (plus or minus 5 percent) in the 2021 fiscal year. The forecast includes Cypress figures for the first time for a full fiscal year. At the mid-point of the guided revenue range, year-on-year revenue would then increase by around €2 billion. The ATV segment is expected to contribute more than 50 percent to this revenue growth. The PSS and CSS segments are forecast to contribute the remaining part of the additional revenue growth with an equal share each. IPC revenue is expected to increase slightly. At the mid-point of the guided revenue range the Segment Result Margin is expected to come in at about 16.5 percent.

Investments in property, plant and equipment and other intangible assets, including capitalized development costs, are planned between €1.4 billion and €1.5 billion for the 2021 fiscal year. Depreciation and amortization is expected to amount to between €1.5 billion and €1.6 billion, of which approximately €500 million is attributable to depreciation and amortization from purchase price allocations arising mainly in connection with the acquisition of Cypress and to a lesser extent still with the acquisition of International Rectifier. Free cash flow is expected to exceed €700 million.

Besides geopolitical and macroeconomic factors, the economic disruption caused by the coronavirus pandemic makes accurate prediction difficult. Key factors influencing the expected development of revenue and earnings during the pandemic will be the progression of global infection rates over time, possible restrictions on economic activities, and the level and effectiveness of governmental stimulus programs.

PROPOSED DIVIDEND FOR THE 2020 FISCAL YEAR: €0.22 PER SHARE
Our dividend policy is aimed at letting shareholders adequately participate in Infineon's economic development and, in general, at paying out at least an unchanged dividend even in periods of slower growth. However, the serious economic impact of and the ongoing risks posed by the coronavirus pandemic need to be taken into account and appropriate financial headroom should be maintained. In addition, the number of shares entitled to receive a dividend has increased by around 4 percent as a result of the capital increase undertaken in May 2020. A proposal will therefore be put forward to the forthcoming Annual General Meeting to distribute a dividend of €0.22 per share for the 2020 fiscal year, €0.05 less than for the previous year. The 55 million new shares issued in May 2020 are fully entitled to receive a dividend. The total dividend amount would therefore sum up to €286 million, compared with €336 million for 2019. Hence, the percentage decline of the total dividend amount is lower compared with the percentage reduction of the dividend per share.

³ Adjusted net income and adjusted earnings per share (diluted) should not be seen as a replacement or superior performance indicator, but rather as additional information to the net income and earnings per share (diluted) determined in accordance with IFRS.

Infineon's segments' performance in the fourth quarter of the 2020 fiscal year can be found in the quarterly information at www.infineon.com.

All figures in this quarterly information are preliminary and unaudited.

ANALYST TELEPHONE CONFERENCE AND TELEPHONE PRESS CONFERENCE
The Management Board of Infineon will host a telephone conference call including a webcast for analysts and investors (in English only) on 9 November 2020 at 9:30 am (CET), 3:30 am (EST). During the call, the Infineon Management Board will present the Company's results for the fourth quarter of the 2020 fiscal year as well as the outlook for the first quarter and the 2021 fiscal year. In addition, the Management Board will host a telephone press conference (also including a webcast) with the media at 11:00 am (CET), 5:00 am (EST). It can be followed over the Internet in both English and German. Both conferences will also be available live and for download on Infineon's website at www.infineon.com/investor.

The Q4 Investor Presentation is available (in English only) at:
https://www.infineon.com/cms/en/about-infineon/investor/reports-and-presentations/

INFINEON FINANCIAL CALENDAR (* preliminary)

- 10 Nov 2020 UBS European Conference, London (virtual)

- 17 Nov 2020 JPM Global TMT Conference, Hong Kong (virtual)

- 17 Nov 2020 Cowen Virtual Silicon Valley Bus Tour, (virtual)

- 18 - 19 Nov 2020 Morgan Stanley TMT Conference, Barcelona (virtual)

- 23 Nov 2020 DZ Bank 11^th Equity Conference, Frankfurt (virtual)

- 30 Nov - 1 Dec 2020 Infineon Power Roadshow and Call (30 Nov) with Peter Wawer, Division President IPC and Andreas Urschitz, Division President PSS, London (virtual)

- 2 Dec 2020 Morgan Stanley Sustainability Call

- 2 - 3 Dec 2020 Credit Suisse 24^th Annual Technology Conference, Scottsdale (virtual)

- 3 Dec 2020 Société Générale Virtual Premium Review 2020, Paris (virtual)

- 7 - 8 Dec 2020 UBS Global TMT Conference, New York (virtual)

- 7 Jan 2021 Oddo BHF Forum 24^th Edition, Lyon (virtual)

- 4 Feb 2021* Earnings Release for the First Quarter of the 2021
Fiscal Year

- 25 Feb 2021 Annual General Meeting (virtual)

ABOUT INFINEON
Infineon Technologies AG is a world leader in semiconductor solutions that make life easier, safer and greener. Microelectronics from Infineon are the key to a better future. In the 2020 fiscal year (ending 30 September), Infineon reported revenue of more than €8.5 billion with a workforce of some 46,700 people worldwide. Following the acquisition of the US company Cypress Semiconductor Corporation in April 2020, Infineon is now a global top 10 semiconductor company.

Infineon is listed on the Frankfurt Stock Exchange (ticker symbol: IFX) and in the USA on the over-the-counter market OTCQX International Premier (ticker symbol: IFNNY). Further information is available at www.infineon.com
This press release is available online at www.infineon.com/press
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D I S C L A I M E R
This press release 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.

Due to rounding, numbers presented throughout this press release and other reports may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.

All figures mentioned in this press release are preliminary and unaudited.