- Q2 FY 2021: REVENUE €2.7 BILLION; SEGMENT RESULT €470 MILLION; SEGMENT RESULT MARGIN 17.4 PERCENT; FREE CASH FLOW €407 MILLION

- OUTLOOK FOR Q3 FY 2021: BASED ON AN ASSUMED EXCHANGE RATE OF US$1.20 TO THE EURO, REVENUE IS PREDICTED TO COME IN BETWEEN €2.6 BILLION AND €2.9 BILLION. AT THE MID-POINT OF THE GUIDED REVENUE RANGE, THE SEGMENT RESULT MARGIN IS EXPECTED TO BE AROUND 18 PERCENT

- OUTLOOK FOR FY 2021: BASED ON AN ASSUMED EXCHANGE RATE OF US$1.20 TO THE EURO, REVENUE OF AROUND €11.0 BILLION (PLUS OR MINUS 3 PERCENT) IS EXPECTED. AT THE MID-POINT OF THE GUIDED REVENUE RANGE, THE SEGMENT RESULT MARGIN IS EXPECTED TO COME IN AT AROUND 18 PERCENT. INVESTMENTS ARE STILL PLANNED TO BE AROUND €1.6 BILLION. FREE CASH FLOW IS NOW ANTICIPATED TO EXCEED €1.2 BILLION

Neubiberg, Germany - 4 May 2021 - Today, Infineon Technologies AG is reporting results for the second quarter of the 2021 fiscal year (period ended 31 March 2021).

"The semiconductor market is booming; electronics that help accelerate the energy transition and make work and home life easier remain in high demand. The push for digitalization continues unabated. Infineon is firmly on course to meet its targets for the current fiscal year," said Dr. Reinhard Ploss, CEO of Infineon. "Demand greatly exceeds supply for the majority of applications. Infineon's manufacturing facilities are running at full speed and we continue to invest in additional capacity. We see bottlenecks in those segments where we depend on chips supplied by foundries, especially in the case of automotive microcontrollers and IoT products. We are doing everything we can to provide our customers with the best possible support in this situation."

The Cypress Semiconductor Corporation ("Cypress") has been fully consolidated since 16 April 2020. The comparability of current figures with those of previous periods is therefore limited.

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.

GROUP PERFORMANCE IN SECOND QUARTER OF 2021 FISCAL YEAR
In the second quarter of the 2021 fiscal year, Group revenue rose by €69 million to €2,700 million, compared to €2,631 million in the preceding three-month period. The 3 percent growth in revenue was driven by brisk demand, particularly in the Automotive segment (ATV) and to a lesser extent in the Power & Sensor Systems segment (PSS), whereas revenue generated in the Industrial Power Control (IPC) and Connected Secure Systems (CSS) segments declined slightly.

The gross margin came in at 36.0 percent, compared to 37.4 percent in the previous quarter. The adjusted gross margin was 39.3 percent after 40.3 percent one quarter earlier.

The Segment Result for the second quarter amounted to €470 million, compared to €489 million in the preceding three-month period, while the Segment Result Margin declined to 17.4 percent. The Segment Result Margin of 18.6 percent in the previous quarter benefitted from a number of positive non-recurring items such as research subsidies and patent-related revenue.

The non-segment result for the second quarter was a net loss of €156 million, compared to a net loss of €157 million in the previous quarter. The non-segment result for the three-month period contained €89 million of cost of goods sold, €58 million of selling, general and administrative expenses and €4 million of research and development expenses. Net other operating expenses amounting to €5 million were also recorded in the second quarter.

Operating income for the period from January to March 2021 amounted to €314 million, compared to €332 million in the preceding quarter.

The financial result came in at negative €42 million and was therefore down on the negative €26 million reported for the first quarter, which had benefitted from positive one-off items.

The tax expense increased from €49 million to €62 million quarter-on-quarter.

For the second quarter of the 2021 fiscal year, Infineon generated income from continuing operations totaling €209 million, down on the figure of €256 million reported for the first quarter. The loss from discontinued operations amounted to €6 million in the second quarter, compared to a break-even result for the previous three-month period. Net income for the second quarter was €203 million compared with €256 million in the first quarter.

Earnings per share from continuing operations amounted to €0.15 (basic and diluted), compared to €0.19 in the preceding three-month period. Adjusted earnings per share³ (diluted) came in at €0.24 after €0.28 in previous quarter.

Investments - which Infineon defines as the sum of purchases of property, plant and equipment, purchases of other intangible assets and capitalized development costs - rose to €332 million in the second quarter of the current fiscal year, compared with €283 million in the preceding three-month period. At €368 million, depreciation and amortization remained unchanged from the previous quarter.

Free cash flow for the second quarter increased from €313 million to €407 million quarter-on-quarter. Net cash provided by operating activities from continuing operations increased to €742 million, up by €154 million compared to the previous quarter's corresponding figure of €588 million.

At the end of the second quarter of the 2021 fiscal year, the gross cash position stood at €3,444 million, compared to €3,334 million at 31 December 2020. Net debt increased from €3,369 million to €3,415 million over the course of the second quarter. Due to the increase in the exchange rate of the US dollar between the measurement dates, financial debt increased to €6,859 million at the end of the quarter under report, compared with €6,703 million at 31 December 2020.

OUTLOOK FOR THE THIRD QUARTER OF THE 2021 FISCAL YEAR
Based on an assumed exchange rate of US$1.20 to the euro, Infineon expects to generate revenue of between €2.6 billion and €2.9 billion in the third quarter of the 2021 fiscal year. Revenue growth will continue to be held down by supply constraints, including the temporary shutdown of our manufacturing facilities in Austin, Texas, in February, as well as capacity limitations at foundries. Taking account of these developments, revenue in the CSS segment is expected to decline slightly, whereas the IPC segment - which is less severely affected by them than the other segments - is expected to grow revenue by a high single-digit percentage rate quarter-on-quarter. Revenue generated by the ATV and PSS segments is forecast to increase slightly. At the mid-point of the guided revenue range, the Segment Result Margin is expected to come in at about 18 percent.

OUTLOOK FOR THE 2021 FISCAL YEAR
Based on its good performance in the first two quarters of the current fiscal year, and continuously strong momentum of the semiconductor market, Infineon again slightly raises its guidance for revenue and Segment Result Margin for the fiscal year as a whole, despite tight capacities at foundries. Based on an unchanged assumed exchange rate of US$1.20 to the euro, revenue is now forecast at around €11.0 billion (plus or minus 3 percent). All segments are expected to benefit from an improving supply situation and continued growth in demand during the second half of the fiscal year. At the mid-point of the guided revenue range, the Segment Result Margin is now expected to be about 18 percent.

Investments in property, plant and equipment, intangible assets and capitalized development costs for the 2021 fiscal year are forecast at an unchanged level of around €1.6 billion. Also unchanged, depreciation and amortization are 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 with the acquisition of International Rectifier. In light of strong business performance, free cash flow is now expected to exceed €1.2 billion, compared with the previous forecast of more than €800 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, the progress of vaccination campaigns, possible restrictions on economic activities, effects on production and supply chains and the level and effectiveness of governmental stimulus programs.

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 second quarter of the 2021 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 4 May 2021 at 9:30 am (CEST), 3:30 am (EDT). During the call, the Infineon Management Board will present the Company's results for the second quarter of the 2021 fiscal year as well as the outlook for the third quarter and the 2021 fiscal year. In addition, the Management Board will host a telephone press conference with the media at 11:00 am (CEST), 5:00 am (EDT). 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 Q2 Investor Presentation is available (in English only) at:
https://www.infineon.com/cms/en/about-infineon/investor/reports-and-presentations/

INFINEON FINANCIAL CALENDAR (* preliminary)

- 6 May 2021 IPC Business Update Call along with PCIM trade show, Nuremberg (virtual)

- 19 May 2021 Berenberg US Conference, Tarrytown (virtual)

- 25 May 2021 3^rd Annual Mizuho Auto Technology Seminar, New York (virtual)

- 26 May 2021 Equita 16^th European Conference, Milan (virtual)

- 27 May 2021 JPMorgan European TMT Conference, London (virtual)

- 1 Jun 2021 Cowen TMT Conference, New York (virtual)

- 8 - 9 Jun 2021 23^rd Exane BNP Paribas European CEO Conference, Paris (virtual)

- 10 Jun 2021 Bank of America Global Technology Conference, San Francisco (virtual)

- 16 Jun 2021 dbAccess Berlin Conference, Berlin (virtual)

- 17 Jun 2021 GS European Digital Economy Conference (virtual)

- 1 Jul 2021 PSS Business Update Call along with MWC trade show, Barcelona (virtual)

- 3 Aug 2021* Earnings Release for the Third Quarter of the 2021 Fiscal Year

- 1 Sep 2021 Jefferies Annual Semiconductor Conference, Chicago (virtual)

- 2 Sep 2021 Commerzbank Corporate Conference, Frankfurt (virtual)

- 2 Sep 2021 dbAccess European TMT Conference, London (virtual)

- 4 / 5 Oct 2021 Infineon CMD "IFX Day 2021", London // 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.